Four people have been injured after an explosion caused a fire at an oil refinery in southern Germany, police said on Friday.

The incident in Neustadt an der Donau, north of Munich, was reported at around midnight (2300 GMT Thursday), with a large contingent of fire brigades deployed to the scene.

According to the police, the cause of the explosion and fire initially remained unclear, as did the extent of the damage.

The Bayernoil refinery company said the fire broke out in a processing plant. The site was subsequently shut down, with safety measures in place.

Police said the building in which the fire broke out was burnt down in a controlled manner.

Residents in the Kelheim district near the site were urged to remain indoors and keep windows and doors closed overnight. Authorities gave the all-clear early on Friday.

According to Bayernoil, the plant is supplied with crude oil from Trieste in Italy and produces flammable gases such as propane and butane, as well as petrol, diesel and heating oil.

Bayernoil has another similar site in Bavaria in Vohburg an der Donau.

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