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According to reports, dozens of cars were damaged and the building of the CNG station was razed to the ground after the blast.
Abid Sher Ali, leader of Pakistan Muslim League Nawaz (PML-N) said that the explosives were planted in a vehicle parked at the gas station on Mall Road in Faisalabad.
Talking to the media, RPO Aftab Cheema said that it was not a suicide blast but did not rule out terrorist activity.
According to reports, PIA accounts officer Aneela Rashid was also killed in the blast.
Meanwhile, police have arrested a man on suspicion from the blast site.
Defence Minister Ahmed Mukhtar has condemned the incident.