Five people were killed and 35 injured after a fuel tanker caught on fire in Libya's southern city of Sebha, emergency services spokesman Osama Ali said in a statement on Monday.
Some of those injured will be moved to the capital Tripoli, around 750 kilometres north of Sebha, to be treated at a specialized hospital, he added.
Local broadcaster Panorama Libya said people were gathering around the tanker to get fuel when the fire took place.
Southern Libya suffers from a severe shortage of fuel, which has led to a price increase on the black market to five dinars per litre ($1), while the official subsidized price stands at 0.15 dinars per litre.
Oil-rich Libya has been in turmoil since the overthrow of Moamer Gaddafi in 2011. Two rival governments currently vying for power.
Violent protests erupted a month ago in many Libyan cities as demonstrators angry with Libya's political deadlock, lawless militias and corrupt politicians took to the streets demanding improved electricity supplies and lower bread prices.