The incident occurred in Kot Wara area around 9:20am, according to Dunya news agency.
The victims included children as two school rickshaws at the scene of accident also caught fire, reportedly.
Bodies and the injured persons were immediately rushed to nearby hospitals. Firefighters also arrived at the scene to control the fire. Some bodies have been charred beyond recognition.
Punjab Chief Minister Shehbaz Sharif expressed sorrow over the accident and ordered an inquiry to determine the cause of the accident.