The pipeline was punctured by oil smugglers.
The fire occurred at approximately 4:00 near the town, which is located southwest of Erbil city, the capital of the autonomous region.
The security forces were dispatched to control the blaze and secure the area.
Traffic is being detoured away from nearby roads.
Oil smugglers have been known to make holes in oil pipelines in the Kurdistan Region in order to siphon off the crude and illegally sell it.
Reporter's code: 50101