The fire broke out around 5 pm at tanks 13 and 14, which have storage capacity of around 10 to 15 lakh litres each, said the MPT fire brigade official.
Butcher Island houses an offloading terminal, and petrol and diesel storage tanks.
Fire-fighting operations were on and no casualties had been reported so far, he said.
Cause of the fire was yet to be ascertained.
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