How is the fire produced by burning oil (or petrol) extinguished ?
Answer: Carbon dioxide gas is used to extinguished fire.
In the case of oil fires, water is not suitable for extinguishing the fire because diesel or petrol is less dense than water and will float in water. As water will spread, such the oil will spread and the fire will become more uncontrollable. Thus carbon dioxide helps to extinguish the fire by cutting off the oxygen supply.