Two men are lucky to have escaped serious injury after an explosion and fire ripped through a Fitzroy service station overnight.

A man burst into the service station on Victoria Parade at about 11.30pm last night, and allegedly lit paper and flammable liquids in the store.

As the service station attendant called police, the other man approached and a scuffle broke out.

The fire triggered an explosion .

When police arrived, they arrested a 20-year-old man at the scene and took him to hospital under police guard.

Thankfully, no one else was injured in the incident.

Press PLAY below for details from Victoria Police