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FILE PHOTO: Burnt out cars and motorcycles are seen at the scene of an oil tanker explosion in Bahawalpur, Pakistan June 25, 2017. REUTERS/Stringer

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ISLAMABAD (Reuters) - A Pakistani subsidiary of Royal Dutch Shell on Tuesday agreed to pay a fine of about 257 million rupees ($2.4 million) in compensation for a 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 province and villagers rushed to collect leaking fuel.

Something then set off a fireball.

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

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

Shell Pakistan Ltd (SPL) said it would pay the fine to "comply with the regulator’s directive".

In a statement, Shell Pakistan added: "However, we do so while reserving the right to contest the fine," Shell Pakistan added in a statement.

The energy regulator ordered Shell Pakistan to pay a fine of 10 million rupees ($95,000).

In addition, it ordered the company to pay one million rupees ($9,400) in compensation to the families of each of those killed and half a million ($4,700) for each person injured.

Shell Pakistan 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 Ramadan ended.

(Writing by Drazen Jorgic; Editing by Robert Birsel)

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