Oke-Osanyintolu said this after the Response Team of the agency had put out the fire on Tuesday.
According to him, the agency received distress calls about a fire outbreak at the facility at about 11a.m.
He said that the fire was extinguished by the combined response team of Lagos State Fire Service, Anti Vandal unit of Nigerian National Petroleum Company (NNPC) and the Nigeria Security and Civil Defence Corps (NSCDC).
“Investigation revealed that illicit storage and handling of diesel in an open fenced led to the outbreak.
“It was also confirmed that this premise has been used for this business for some years.
“The post disaster assessment revealed that there were seven plastic storage containers, 25 drums, three storage tankers, one articulated tanker and six buses used for the illicit storage and transportation of diesel.
“The premises have been sealed and handed over to NSCDC for further investigation,” Oke-Osanyintolu said.
The LASEMA boss said that the situation had since been brought under control.
He charged residents of the need to take responsibility with respect to life and properties by reporting such instances to the authorities.