The station was packed with people queuing for fuel that has become increasingly scarce during the country's 21-month-long insurgency aimed at overthrowing President Bashar al-Assad.
The semi-official al-Ikhbariya television station on Friday showed footage of 10 burnt bodies and Red Crescent workers searching for victims at the site.
The opposition Revolution Leadership Council in Damascus said the explosion was caused by a booby-trapped car.
There was no immediate indication of who was responsible for the bombing in the Barzeh al-Balad district, whose residents include members of the Sunni Muslim majority and other religious and ethnic minorities.
"The station is usually packed even when it has no fuel," said an opposition activist who did not want to be named.
"There are lots of people who sleep there overnight, waiting for early morning fuel consignments-Aljazeera
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