The tanker exploded after fuel leaking from its damaged container caught fire.
The president prayed for the eternal peace of the departed souls and expressed heartfelt condolences to the bereaved families. "Some 151 people including women and children lost their lives in this tragedy".
Rescue officials said, most of those taken to the hospitals got 70 per cent burn injuries, while more deaths are feared.
District Emergency Officer Asif Raheem Channar told APP most of the bodies were burned beyond recognition and would require DNA testing to confirm identities. Rescue workers said about 80 people had been injured. "The people who were alive were in really bad shape", he said.
According to initial report, a cigarette is suspected to have caused the massive blaze that engulfed the people collecting the spilled fuel, Khan said.
"I parked my bike by the road and waited while my friend went to collect the fuel", said Mr. Rashid, who had burns on his hand and a leg. All the motorbikes and people were on fire. "Rashid and I were a little away from the tanker therefore we are alive", Hanif said. They said the tanker was carrying about 6,600 gallons of oil.
The explosion came as villagers began to gather around the truck in an attempt to collect fuel which had begun to leak from the vehicle. The leaking fuel was even flowing along the highway in the fields.
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"People were collecting oil in bottles, cans and household utensils".
Army helicopters helped evacuate the wounded.
At least six cars and 12 motorcycles were burnt, Pakistan's Dawn newspaper reports.
Shahbaz Sharif, chief minister of Punjab Province, has announced a compensation package of 2 million rupees (19,100 US dollars) for each of the killed and 1 million rupees (9,550 USA dollars) for each of the injured.
Nishtar Medical Institute (NMI) Vice Chancellor Dr. Mustafa Pasha on Sunday said that the best medical facilities were being provided to those injured in the oil-tanker incident.
Army chief Gen Qamar Javed Bajwa ordered the Army to assist the civil administration in the rescue effort. Army helicopters were used in the rescue operations to transport the injured to the hospitals.
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