Densely packed shanties
According to local officials the victims were an eight-year-old girl who fell to her death from a makeshift bridge as people fled the fire and a resident who jumped into nearby Manila Bay and drowned.
Most of the residents in the coastal neighbourhood were fishermen and were used to storing gasoline containers inside their homes for their motorised boats.
Fires are common in slum areas of the Philippines where shanties are densely packed.
The newly homeless have sought shelter in a neary gymnasium and a school.