The luxury bus was going to Ahmedabad from Pune when it collided with the tanker at Kude village within the Manor police station limits in Palghar taluka.
The accident took place around 1.45 AM. The tanker belonged to the BPCL and was carrying diesel towards Hazira in Gujarat. Due to the collision, both the vehicles immediately caught fire, police said.
As per the initial reports, all the deceased were occupants of the ill-fated bus.
The administration is making all efforts to establish the identify of the victims and those identified would be handed over after due verification, he added.
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The injured are undergoing treatment at Manor Rural Hospital and are said to be out of danger.
Fire engines from the nearby areas brought the fire under control, officials said, adding that the district and police authorities are supervising the relief and rescue operations.