The explosion led to a fire in which some machinery of the factory was damaged, a police official said.
No casualty was reported as there were no workers in the factory when the mishap occurred, he said.
Initially, a hydrogen gas tanker exploded and then, in a chain reaction, two other tankers carrying the same fuel blew off, Peddapuram's Deputy Superintendent of Police (DSP) C V Rama Rao said.
The deafening sound caused panic among villagers residing nearby as they feared it to be an earthquake. Meanwhile, the fire caused by the tankers' explosion spread inside the oil factory and damaged the machinery, he said.
"An assessment of the property loss is being carried out. Revenue officials also reached the spot and we are obtaining a report from the factory management. The situation is now under control," the DSP said.
(Except for the headline, this story has not been edited by NDTV staff and is published from a syndicated feed.)
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