Article published on the 2008-10-07 Latest update 2008-10-07 11:06 TU
Officials say that they do not know if the blast is linked to the political turmoil which has rocked Thailand for months. The woman who died was inside the white Cherokee jeep which burst into flames near the headquarters of the Chart Thai party not far from parliament.
Earlier Chavalit, who was recently appointed as one of the country's five deputy premiers, resigned, claiming that the police response to the demonstrations compromised his task as chief negotiator with them.
"The reason I resign is because what the security officials have done is not in line with what I had promised and I have attempted to avoid casualties," his resignation letter, which was leaked to the AFP news agency, said.
Prime Minister Somchai Wongsawat responded by refusing to stand down or declare a state of emergency.
Police fired teargas at the protesters for the third time on Tuesday, bringing the number reported injured to 148.
About 8,000 demonstrators left the government compound on Monday to surround parliament, where MPs were meeting in special session.
After police fired teargas on Tuesday in an effort to clear a way for the parliamentarians to leave, demonstrators overturned police cars and set them alight.