The gasoline leaked from a broken pipe after an accident at a construction site in southwest China's Guizhou Province last night.
This is the second pipeline to have been broken down in the last few days.
Fifty-five people were killed and 160 injured when a leaking oil pipeline exploded in Qingdao city on November 22.
Nine people, including seven officials of the state-owned Sinopec, were taken into custody in connection with the last week's rupture that triggered one of the country's worst industrial accidents.
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The pipeline belongs to a branch of Sinopec.
Three persons have received medical treatment and over 110 are working to repair the broken pipe and clear the site, about 30 metres from the Shanghai-Kunming railway, with residential houses nearby, state-run Xinhua news agency reported.
The local government has taken emergency measures to stop the leak and evacuate residents from within a 2-km radius.
A provincial joint investigation team has been formed to look into the accident and safety inspections are being carried out across the province.