Martyn Massie, 23, from Forgue, was cutting a metal drum that had previously stored used engine oil.
The blade of the plasma cutter Mr Massie was using to remove the lid generated sparks which ignited the flammable vapours inside the drum.
The drum exploded and Mr Massie was struck on the head with the lid, knocking him unconscious.
He was airlifted to hospital with multiple head injuries but he died the following morning.
A Health and Safety Executive (HSE) investigation found that the cutting operation had not been properly risk assessed by Pitmachie Garage Ltd.
The drum had not been completely emptied of waste engine oil, and this would have been contaminated with petrol, causing the drum to be filled with petrol vapours.
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The investigation also found that the system of work employed for cutting the drum was such that a lack of information, instruction and training resulted in the worker using an unsafe method to carry out the task.
Although it was known by workers at the garage the used engine oil could be contaminated with fuel, they were not fully aware of the dangers of using a heat source such as the plasma cutter to remove the drum lid.
Pitmachie Garage Ltd, of Benview, Pitmachie, Old Rayne, Insch, Aberdeenshire pleaded guilty to breaching Section 2 of the Health and Safety at Work Etc Act 1974 and was fined £15,000.
After the hearing, which took place this week at Banff Sheriff Court, HSE Inspector Joanne Nicholls said: "Drums that have contained flammable material and seem to be empty often still have residues in them. Just a teaspoon of petrol can be enough to cause an explosion.
"This incident was entirely foreseeable, and could and should have been avoided. It was not essential for the drum lid to be removed at all, and in asking him to do so, Pitmachie Garage Ltd failed to protect Martyn Massie - costing him his life.
"If Pitmachie Garage Ltd had taken steps to identify what hazards there were in cutting the oil drums, and ensured that their workers had the right information and training to do the work safely, this incident would never have happened."
Information is freely available to employers to help them manage the risks associated with this type of work from the HSE website: HSE website
(JG/GK)
