Fire crews were called to T Y Duncan Rd about that time and found a car alight. Two bodies were discovered inside.
Detective Sergeant Hannah Booth, of Oamaru, said the cause of the crash was being investigated.
Det Sgt Booth also confirmed to the Otago Daily Times the two people killed in the crash were from Oamaru.
"It's too early to tell the cause of the crash at this stage."
She said the 18-year-old driver was in Dunedin Hospital in a serious but stable condition.
It was expected further details about the two people killed would be made available later today.
"The two deceased, their next of kin have yet to be notified. We are not going to be releasing any details about them at this stage," Det Sgt Booth said.
Cordons were in place at TY Duncan Rd and Shortland Rd earlier today but have since been removed.
TY Duncan Rd is a rural road off State Highway 1, between the highway and the coast.
Two fire crews were involved in putting out the blaze.
The vehicle has been removed from the scene and the road has been reopened.