Firefighters were called to a car park off Osborne Road in South Shore following reports of an explosion earlier this morning.
Crews from Blackpool and South Shore stations attended shortly before 6.30am, and found a locally-owned Ford Transit van engulfed in flames.
Blackpool Fire Station tweeted to say there had been calls about 'an explosion with high flames', while residents told how the street had been rocked by a loud bang.
The blaze 'looked dramatic' but was not initially being treated as suspicious, a police spokesman told The Gazette.
But a spokesman for the Lancashire Fire and Rescue Service later said arson was being considered as a cause, and said an investigation was underway.
There were no reports of any injuries, and crews were back at their respective stations by 7.30am.