A Melbourne service station has narrowly avoided disaster after a man allegedly attempted to blow up his own car using petrol and firecrackers this morning.

CCTV from the Boundary Road Caltex Woolworths, in Braeside, shows a man arriving in a black Holden Commodore about 5.30am.

He then fills the vehicle with fuel, before allegedly lighting a number of explosives and throwing them into the car.

The car did not catch alight but the man fled the scene with his dog in tow, allegedly then stealing a car from a nearby residential street.

The event put the service station into lockdown for more than three hours with detectives scouring the crime scene – allegedly finding multiple points of ignition throughout the car.

Nearby residents were woken to the sound of firecrackers going off.

“We weren’t sure what it was.. gunshots or what.. but it was loud and concerning at that hour of the morning,” neighbour Ricci Trower told 9NEWS.

“It woke my 10-week-old baby, my mother and my husband. We are a small community here,” she said.

The man – a 26 year old from Frankston – was arrested, shirtless and barefoot, around 9.40am in Chute Street, Mordialloc, without the stolen car in sight.

Marius Bryck described the arrest as “manic”.

“He was screaming and shouting and ran away before police caught him before,” he said.

“There were cars everywhere. His dog jumped into a police car.”

The Frankston man was charged with 16 offences including theft of a motor vehicle, reckless conduct endangering life and use of unauthorised explosives.

He made no application for bail and apologised profusely to the court. The 26-year-old was visibly distressed and admitted to coming off a drug dependence.

Extracted from 9 News.