Two petrol tankers loaded onto the train overturned when it derailed, and local villagers collecting the fuel were burned to death in the ensuing blaze, according to the Myanmar information ministry website.
Sixty-two people were hurt in the accident, which happened at about 10:00am (0330 GMT) in Kanbalu in the Sagaing Region, it said.
"While some people from nearby villages were collecting the oil, the fire spread and 25 of them were killed and 62 injured, according to initial information," the ministry website said.
The ministry added that authorities were investigating the accident and the casualties had been rushed to hospitals in the area.
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