OGRA held the company responsible for the accident.

A private oil company on Tuesday agreed to pay a fine of about Rs257 rupees in compensation for the Ahmedpur East tanker truck explosion that killed more than 200 people last month.

The fiery blast on June 25 was one of the worst accidents in Pakistan's history. A tanker carrying fuel rolled over in Punjab's Ahmedpur East and villagers rushed to collect leaking fuel.

Something then set off a fireball.

The Oil and Gas Regulatory Authority (OGRA) held the company responsible for the accident in which 217 people died and 61 were injured.

Bahawalpur oil tanker fire: OGRA holds private oil company responsible

OGRA's report also pointed out that the fitness certificate issued to the oil tanker turned out to be fake

The company said the tanker was owned by a contractor it hired to transport its fuel.

The company said it would pay the fine to "comply with the regulator?s directive".

In a statement, the oil firm added: "However, we do so while reserving the right to contest the fine."

The energy regulator also ordered the company to pay a fine of Rs10 million.

In addition, it ordered the oil company to pay Rs1 million in compensation to the families of each of those killed and Rs0.5 million for each person injured.

The company said it did not accept liability but it did "clearly recognise that this was a tragedy that has deeply affected the community" as the holy month of Ramazan ended.