Also, gas leakage was reported from the tanker following which police have imposed restrictions on movement of vehicles through the area, a senior police official said.
Superintendent of Police, Ganjam, Narsingh Bhol said so far one body has been extricated while identification of all three victims is yet to be ascertained.
The Bhubaneswar-bound LPG-laden tanker from Visakhapatnam in Andhra Pradesh was suspected to have met with the accident when the driver tried to prevent an accident with a scooter rider, police said.
The victims were standing near the pan-shop when the accident took place, he said.
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Senior police and district officials, including Inspector General of Police, southern range, Amitabh Thakur rushed to the spot.
"Since the gas continued to leak from the tanker, we have restricted movement of vehicles through the NH in the area. The vehicles are being diverted through Jagannath Pur," the SP added.
"The effect of the gas leakage would prevail for at least 12-hours. So we have requested the people not to use fire in the area for at least 12 hours," he added.
While one technical team from Jatni, near Bhubaneswar rushed to the spot, another from Visakhapatnam reached the site to check the leakage of the gas.