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Guide to Gas Prices in Iceland

Updated: Feb 15

Planning your Iceland road trip and wondering how much gas in Iceland is going to set you back? You’ve probably heard that Iceland gas prices are famously high. That’s especially true when compared to the prices that visitors from North America and Europe are used to at home.

Exploring the awe-inspiring landscapes of Iceland by car will allow you to see all the natural wonders on this magical island. If you’re planning to drive in Iceland, researching fuel costs before you arrive is a great way to prepare your budget and make sure you get the best prices.

We can’t deny it: Iceland is an expensive country. Like food prices and the cost of alcoholic drinks, petrol, and diesel prices can come as a bit of a shock for visitors to Iceland. Let’s explore what current gasoline prices in Iceland are. Moreover, how you can save money and price differences between locations and suppliers, so you know what to expect when it comes to the cost of gas in Iceland.

 Iceland gas prices

Gas prices in Iceland 2023: price of gasoline in Iceland per liter

Iceland is the second most expensive place in the world for gas currently, topped only by Hong Kong. On the most up-to-date list published by Global Petrol Prices, Iceland’s fuel is priced at $2.75 USD per liter. To put that in context, right now, the UK’s figure is $2.01 USD, Germany’s is $1.73 USD and the USA’s is $1.09 USD. In fact, all the Scandinavian countries are towards the higher end of this fuel prices list.

When you visit Iceland, you need to consider that fuel is expensive – there’s no getting away from that. However, with careful planning and vehicle selection, you can still have a magical time in Iceland, despite the high fuel prices.

Current gas prices in Iceland by location and supplier

At the pump, the main brands vary a little. The cheapest supplier at the time of writing in the Reykjavík area is Orkan’s gas station. There are Orkan pumps all around Iceland, with many around the Reykjavík area, such as at Reykjavíkurvegur and other locations.

There, you’re likely to have to fork out around 305 ISK and 328 ISK ($2.16 USD to $2.32 USD) per liter for 95 octane petrol. Depending upon which location you choose to fill your car up, of course.

For diesel, you can expect to pay in the region of 309 ISK to 326 ISK per liter ($2.19 USD to $2.31 USD). You can check the location of Orkan gas stations and the cost of gas at each location on this handy map.

Top-up the tank at ÓB, Olís or N1 in the Reykjavík area and you’re likely to encounter a higher rate, sometimes with quite a significant price hike. The most expensive fuel right now is at N1 gas stations, which are located in Reykjavík and at other locations around Iceland. Here, you can expect to pay about 397 ISK ($2.75 USD) for 95 octane.

Cost of gas in Iceland

For a reliable list of prices, check out this frequently updated list of current gasoline prices in Iceland. You can conveniently filter by location. The cost of gas in Iceland is pretty consistent from region to region, once you get out of Reykjavík and its surroundings.

Costco Iceland gas prices

As they are heavily influenced by government taxation, fuel costs tend to be pretty stable. However, here’s one trick you might want to think about. Costco, the wholesale retailer with branches in Europe, Asia and North America, offers discounted fuel to its cardholders.

If you’re already a cardholder in your own country, the good news is that your card will also be accepted in Iceland. That means you can take advantage of the savings offered during your trip, just as you might at home.

However, there’s a fee to join, and, as you might expect in Iceland, locations of this US-headquartered retail giant are limited to just one. In 2017, Costco opened a branch just south of Reykjavík. Around a 15-minute drive from the capital, the Icelandic branch of Costco is located at Kauptún 3 in Garðabær, just across the street from IKEA.

At the time of writing, the price for unleaded petrol on its forecourt was 311 ISK ($2.21 USD) per liter, with diesel priced at 314 ISK ($2.23 USD) per liter. With savings this small and the inconvenience of only having one location, this hack only works if you already have a Costco membership card and you’re likely to be passing close by.

Fuel-efficiency: think about the vehicle when you rent a car or camper in Iceland

While Iceland gas prices are one thing, the number of kilometers you can drive per liter is another entirely. If you’re planning a road trip in Iceland on a budget, considering the fuel efficiency of the vehicle you plan to rent is key. Opting for something that’s not a gas guzzler can result in big savings when it comes to your gas station visits in Iceland.

Current gas prices in Iceland

There are some great options for smaller, more fuel-efficient vehicles for you to choose from. Take a look through these choices for your camper rental in Iceland to get an idea of the different models available. Booking your rental vehicle earlier rather than later will help ensure that you can secure the best camper for you.

With the high Iceland gas prices, you’ll find that the savings mount up pretty quickly with a more fuel-efficient vehicle. This is particularly true if you’re planning a longer trip, like driving Iceland’s Ring Road, for example.

Any savings you make by picking a more fuel-efficient vehicle for your Icelandic adventure can be spent instead on fun activities during your trip and, of course, the delicious Icelandic food that you have to try!

Iceland gas money saving tips

With Iceland gas prices not being friendly to your wallet, you may be wondering how you can save money on gasoline in Iceland. While the amount you spend on topping up your car is likely to be more in Iceland than in your home country, there are definitely some ways you can save money. Here are some of our top cost-cutting tips to help offset the high Iceland gas prices:

  • Select a diesel vehicle – Diesel is usually cheaper than gasoline. That makes renting a diesel vehicle in Iceland the more cost-effective option. The savings from renting a diesel vehicle are sure to add up over the time you spend in Iceland.

  • Drive efficiently – Little things like maintaining a steady speed! Not accelerating too fast if you can avoid it and driving slower, if possible, will all help to lower fuel consumption. We recommend avoiding pressing the accelerator or brakes too suddenly, if avoidable, to save fuel.

  • Do your research – We think you already get a tick for this one, as you’ve read this gasoline price in Iceland blog to clue yourself up about current gas prices. Use the information and links included to help you find the cheapest gas station near you. This will help to save money on gas day to day as you travel around Iceland.

  • Use self-service pumps – Self-service pumps are normally cheaper than those with a service building and staff. Even at these locations, you can normally find a self-service pump to use.

Price of gasoline in Iceland

How to pay for gas in Iceland

If you’re planning to rely on cards rather than cash to pay for gas in Iceland, think about the type of card you’re carrying. Some gas stations require the use of chip and pin if you’re going to pay at the pump. Make sure you carry your debit card and a couple of credit cards in case one isn’t accepted.

As well as cards, it’s always a good idea to carry some emergency cash to make sure you never get stranded. And, of course, don’t leave it to the last minute to refuel if your travels to Iceland take you out into the countryside or to more remote parts of the country. There’s nothing more stressful than watching the fuel gauge sink perilously through the red when there’s no gas station in sight!

Exploring Iceland by campervan

Now you’re prepared for what to expect in terms of Iceland gas prices, it’s time to hit the roads and get exploring this incredible country!

Travel with the ultimate freedom and flexibility by renting the best campervan in Iceland. With a campervan, you’ll be ready to visit the lush natural landscapes and beautiful geological features all around this enchanting island, taking your home with you as you go. Safe travels and enjoy your visit!


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