The driver of the lorry, who was overspeeding, lost control of the vehicle and it hit an electric post and overturned on the national highway early this morning, they said.
However, no leakage of gas has been reported.
Indian Oil Corporation officials from Mangaluru rushed to the spot and are making arrangements to transfer the gas to another lorry.
People in nearby areas, who were evacuated as a precautionary measure, are returning to their homes, police said.
The driver and cleaner of the lorry were treated for minor injuries at Thalassery Co-operative hospital, they said.