Government spokesman Hassan Abbasi said at least 60 people died and 70 were injured in the blast, which occurred in Morogoro, a town around 200 km west of the commercial capital Dar es Salaam.
A damaged tanker truck exploded in eastern Tanzania on Saturday as people were trying to siphon fuel out of it, killing at least 57, police said.
Pictures on social media show dozens of charred bodies amongst the wreckage.
Many of those killed and injured had been siphoning petrol from the vehicle when it burst into flames, according to police and witnesses.
Tanker fires have become a common feature on the continent as the poor jostle to scoop free fuel.
A damaged tanker truck exploded in Tanzania Saturday, with at least 62 people burning to death, making it one of the worst incidents of this kind in the country.
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Firefighters fro Tanzania People's Defence Force (TPDF) and Fire Brigade have since been carrying out a rescue operation.
Most of the victims were taken to hospital in Morogoro, although some bodies were still at the accident site, local health official Rita Lyamuya said.
"The fire was huge and it was challenging to rescue victims", Daniel Ngogo, who saw the explosion, told Reuters.
Regional police commissioner Steven Kabwe told the local Azam TV that many suffered serious burns.
Residents are routinely killed by explosions while stealing fuel from incapacitated tankers in East Africa.