The fire broke out in the Kariz Mir area of Kabul's 17th security district. According to Afghan sources, the fire is so large that its flames can be seen from afar.
Electricity was cut off in most parts of Kabul after the fire.
Interior Ministry spokesman Tariq Arian said the fire started with the burning of a fuel tank.
Kabul Police Command also announced that a large number of fire brigades are currently fighting the fire.
The damage caused by the fire appears to be widespread.