A local journalist at the scene in Limani in Far North Province told the BBC that at least 30 villagers had surrounded the tanker after it crashed.
They were trying to scoop up the petrol escaping from the vehicle, which was en route from Nigeria to Chad.
As a bus tried to edge past the tanker, a fire was sparked by its exhaust and quickly engulfed the whole area.
The exact number of casualties are not known as the incident happened late on Thursday night and the rescue effort was hampered by the dark.
Journalist Ebenezar Akanga told the BBC's Randy Joe Sa'ah in the capital, Yaounde, that some 18 people are believed to have been taken to hospital.
The most severe cases have gone to the hospital in the provincial capital, Maroua, 95km south of Limani.
Others are being treated at five local health centres, the journalist says.
The bus was carrying about 20 people.
BBC
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