Authorities estimate the losses at Rs.5 crore in the explosion that occurred when the tanker overturned after hitting a divider around 11.30 p.m. Monday at Chala near here.
Among the dead are three couples and four siblings. The condition of seven injured is reported to be critical.
As many as 46 shops, 40 houses and 11 vehicles were damaged in the fire.
The state government has announced an ex gratia payment of Rs.10 lakh to the kin of each of the dead and up to Rs.5 lakh to the injured.
The driver of the vehicle, who had been absconding, surrendered to police Friday.
Kannur Lok Sabha member K. Sudhakaran has taken up the matter with the union petroleum ministry since the tanker belonged to a public sector oil company.
Chief Minister Oommen Chandy has twice visited the accident site in past five days.
A delegation led by Communist Party of India-Marxist state secretary Pinarayi Vijayan and other Left leaders reached here Saturday.