The exact cause of the fire, which broke out in a parking area for the Parviz Khan border crossing that connects the autonomous Kurdistan region with Iran, was still under investigation.
"Firefighters have brought the fire at the Parviz Khan border crossing under control," the Garmiyan regional municipality, home to the crossing, said in a statement.
"One person was killed and seven others injured," it said, adding that the victims were all taken to hospital.
"The fire broke out around 1900 (1600 GMT) in a parking area reserved for fuel tankers and lasted around two hours," the municipal spokesman Shoman Ahmed told AFP.
The fire destroyed 15 tankers carrying petroleum derivatives, he said, adding that a lorry driver died while firefighters were among the injured.
An investigative committee has been appointed to establish the cause of the fire, but initial reports suggest that a driver had taken out a gas stove to prepare a meal, Ahmed said.
Fires are a frequent occurrence in Iraq, where safety rules are often not followed, especially in the construction and transportation sectors.
With summer temperatures reaching 50 degrees Celsius, the country has experienced several fires in recent months including in shopping centres, warehouses and even hospitals.
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