Officials said the explosion late on Saturday also injured others who were trying to steal fuel from the tanker, adding that the death toll could rise.
They described scenes of devastation in the working class surburb of Sunningdale, where bodies littered the streets. Some people died while trying to steal fuel leaking from the tanker.
Many of the bodies were charred beyond recognition.
The Fire Brigade was busy trying to put out the fire while ambulances were ferrying people to hospital.
Police declined to comment on the accident or to give the number of the deceased. Eyewitnesses said the blast occurred when the fuel truck overturned after getting involved in accident with another vehicle, leaked fuel and then later exploded.
It was not immediately clear what caused the initial accident or later blast, but local people said the truck swerved after the accident, toppling the vehicle and spilling fuel. Fire then erupted.
Roads in the Graniteside area are notoriously bad after years of neglect.
There have been numerous similar accidents, where crowds gather around fuel tankers involved in crashes, only for the tanker to explode.
The wounded were being rushed to nearby hospitals and aid workers were called in to help with medical treatment. Police said they were still trying to identify bodies before they were buried, but many were completely charred.
Thee truck was reportedly carrying 49,000 liters of petrol at the time.
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