UPDATE: Residents in East Bundaberg are free to leave their houses after police cancelled an emergency situation after a fire was extinguished on Sheridan St.
An emergency situation was declared at 9.54am for an area bordered by Scotland Street, Sheridan Street, Steptoe Street and Steindl Road after a fire at a auto repair shop was emitting potentially toxic fumes.
While the fire has been extinguished, residents are still advised to avoid the Sheridan Street area.
Police investigations are continuing.
EARLIER: Fire crews have put out a blaze on Sheridan St, East Bundaberg which has this morning completely destroyed smash repair business Kimberly's Auto Hospital.
Bundaberg Police have asked residents to be careful and avoid the area as "toxic fumes" emanate from the burning business.
Businesses in the surrounding area are being evacuated and residents of East Bundaberg are instructed to close their windows due to the chemicals in the fire, stay inside and stay well clear of Sheridan St.
Two Bundaberg Fire and Rescue crews had to smash through the building's glass doors to gain access as smoke from the blaze could be spotted across town.
More crews are being sent to the blaze which has been contained, but has destroyed the business and left its roof collapsed.
It is believed there have been no serious injuries as a result of the fire.
The business backs on to bushland.
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