"The government blames clashes between rival militias for starting the fire, which it says may cause a humanitarian and environmental disaster," BBC reported.
Country's National Oil Company (NOC) has reportedly said that the fire is out of 'control'.
Fighting between rival militia groups in the country to take control of Tripoli's main airport has let 97 killed so far.
Firefighters almost managed to put out the blaze when it took hold of a first tank but had to withdraw after fighting resumed in the area, Libyan oil company spokesman Mohamed Al-Harrai told the BBC.
He told BBC that shrapnel hit the second fuel tank, igniting it, and the fuel compound was still being hit.
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