A gas-powered pickup truck exploded early Monday on the outskirts of Yangon, killing seven people, military sources confirmed.

The Toyota Hilux pickup was travelling from Yangon to Taikkyi, 77 kilometres north of Yangon, when it exploded at 2 am (1930 GMT), killing seven of the eight passengers, army officials confirmed.

The blast was believed to have been caused by a faulty compressed natural gas (CNG) tank.

CNG has become a popular alternative fuel in Myanmar to benzine and diesel this year, in the face of rising oil prices.