DRAMATIC video has captured the moment the cab of a ute exploded in flames on the Eton Range this afternoon.

The Peak Downs Highway was closed in both directions at the top of the range for nearly two hours after a ute erupted just after 12pm, resulting in a grass fire and major oil spill.

A Queensland Fire and Emergency Services spokesman said crews were called to the scene at 12.15pm.

"When we arrived the ute was engulfed in flames and the fire had spread causing a grass fire," the spokesman said.

"Crews brought the grass fire under control quite quickly, within a matter of minutes, but are still dampening down the vehicle."

The spokesman said the vehicle fire had also resulted in a large oil spill and the highway was closed in both directions.

A motorist who witnessed the blaze said traffic had begun to flow again about 1.30pm.

Queensland Police are on scene however Queensland Ambulance Service were not required to respond.