A lorry carrying bread crashed on Friday morning at around 09.00 near Marmelete, Monchique, and burst into flames killing the driver and passenger.
The car plunged into a ravine and then caught fire, according to the GNR.
According to the deputy commander of the local Fire Department the two men "were alive" but died from severe burns.
The road which is widely used by heavy goods vehicles was closed to traffic and did not reopen until 13.30.