The tanker caught fire and exploded apparently after fuel leakage from its damaged containers.
At least 100 people were killed and 75 others severely injured in the blaze, local media reported.
People had gathered around the tanker after it overturned to collect oil that had leaked out.
The fire brigade arrived on the site of the incident shortly after the blaze started and rescue operations were initiated.
At least six cars and 12 motorcycles were burnt in the blaze.
The injured have transferred to District Headquarters Hospital, rescue officials said.