The fire broke out in the oil godown at Kharial area of Dankuni at around 5.20 PM last evening and soon spread to nearby areas.
Eighteen fire tenders rushed to the spot and extinguished the blaze at around 9.30 pm last night, they said.
West Bengal Fire Services minister Javed Khan also rushed to the spot and supervised the fire fighting operation.
Additional Superintendent of Police (Industrial) Amitav Verma said preliminary investigation reveal that some wielding work was going on the oil godown and spark from the wielding fell on an oil barrel and caught fire.