Reports that the fire has reignited have come in.
Firefighters are again fighting the blaze in Welcome Bay.
Police cordons are now being set up on Corinna St and Ranginui Road.
Smoke can be seen and smelled from as far as James Cook Drive and the start of Welcome Bay Road.
Six fire trucks are attending.
A reporter at the scene said the fire has been extinguished by fire fighters around 2.30pm.
It is believed that the fire started by a car that overheated.
A grassy scrub area around 30m wide has been affected by the fire.
A reader who is currently at the scene said that three tenders, rural and "some sort of special fire engine" have arrived.
He mentioned that the fire is rapidly heading down the hill towards Esmeralda and Dingadee Streets.
It is believed the fire may be threatening homes.
The fire service is on the way to a car fire and a scrub fire in Welcome Bay.
A Northern Communications Centre spokesperson said there had been multiple calls about a car fire and a scrub fire on Ranganui Rd
A Bay of Plenty Times reader alerted us around 2.00pm today on a car explosion on Ranginui Road in Welcome Bay.
He said that the explosion has started a bush fire.
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