How Much is Gas in Iceland? A 2025 Update

There is no better way to explore the island than by road-tripping around the country. But this will inevitably require wheels and gas, and you’ll need to budget accordingly. If you rent a motorhome in Iceland it already takes care of many expenses, but then you’re still left with one important question: how much is gas in Iceland?

Well, in a country where not all gas stations are equal, and gas prices vary, you’ll need a bit more inside information to better understand the answer to this question. That’s why we created this article to give you the low down on gas prices in Iceland and how you can make your road trip as cost-effective as possible.

The Different Gas Stations in Iceland & Their Pricing

We already mentioned that prices may vary based on certain factors. However, you can use the following gas stations of Iceland cheat sheet to get a feel for their general pricing and start budgeting accordingly:

Gas Station	About	Amenities/Facilities	Gas Prices
Olis	The golden oldie of Iceland’s gas stations. Since it’s been around since 1927, they’re pretty common all across the island.	· Gas Station Attendants · Bathrooms · Convenience Stores · Restaurants/Diners	322 ISK (+/- $2.42 or €2.23) per liter for gas 332 ISK (+/- $2.49 or €2.30) per liter for diesel
N1	Gas stations known for their exceptional service, amenities, and facilities.	· Gas Station Attendants · Bathrooms · Convenience Stores · Restaurants/Diners	306 ISK (+/- $2.30 or €2.12) per liter 320 ISK (+/- $2.40 or €2.22) per liter for diesel
Orkan	Not only one of our most common gas stations here in Iceland but also one of the cheaper options.	· Gas Station Attendants (Sometimes) · Bathrooms · Convenience Stores · Restaurants/Diners	305 ISK (+/- $2.29 or €2.11) per liter 318 ISK (+/- $2.39 or €2.20) per liter for diesel
Ob	Another of our more established gas stations here in Iceland. Many don’t know that this budget-friendly gas station brand that’s been around since 1996 actually falls under the Olis umbrella.	· Unmanned · Bathrooms (Sometimes) · Convenience Stores (Sometimes)	305 ISK (+/- $2.29 or €2.11) per liter 318 ISK (+/- $2.39 or €2.20) per liter for diesel
Atlantsolia	Gas stations known for their minimalistic approach. But because their still such a small chain, their prices tend to be a bit higher than the rest.	· Unmanned · Bathrooms (Sometimes) · Convenience Stores (Sometimes)	305 ISK (+/- $2.29 or €2.11) per liter 318 ISK (+/- $2.39 or €2.20) per liter for diesel
Costco	We still have only one in the capital city of Reykjavik, and fueling up will require a membership card. But they are easy to get and fairly affordable, especially when taking into account that Costco is considered one of our cheapest gas stations in Iceland.	· Gas Station Attendants · Bathrooms · Convenience Stores · Restaurants/Diners	279 ISK (+/- $2.09 or €1.93) per liter 293 ISK (+/- $2.20 or €2.03) per liter for diesel

Why is There a Difference in the Price of Gas in Iceland?

There are many reasons why Iceland’s gas prices differ. These include:

• Firstly, our gas may be a bit more expensive than you’re used to back home. That’s because Iceland is an island and the logistics of getting gas to us can be pretty costly.
• Then, you’ll find that we have different gas stations all across the country, all operating independently from one another and offering different facilities and amenities (besides gas, of course). Different overheads and different managing boards mean different pricing modules.
• The same can also apply to gas stations under the same gas station brand. More facilities and amenities & staff = more overheads = pricier gas, and vice versa. So, don’t expect the same gas station brands to all have the same gas prices.
• Ever heard estate agents talk about “location, location, location”? Well, when it comes to gas prices in Iceland, it’s a real thing. In the remote regions of Iceland, gas stations become few and far between, and it can also be a challenging (and costly!) process to get gas to them. That’s why gas at these gas stations is often a tad more expensive. 
• There are exceptionally high taxes on gas in Iceland. This is not just because of VAT, special excise tax, etc., but also because of our passion for protecting the environment (hence our carbon tax).

The Most Affordable Gas Stations Based On Location

Below is a cheat sheet to all the gas stations with some of the cheapest gas in Iceland:

How the Cost of Gas in Iceland Compares to the Worldwide Average

As we already touched on, the gas prices in Iceland may be slightly higher than you’re used to back home due to various factors. This is a general idea of how much gas costs in Iceland compared to a few other big countries in the world (remember, we’re working with averages here):

For those looking for Diesel alternatives:

How to Pay for Gas in Iceland

It’s one thing to know how much gas costs in Iceland, but it’s quite another to actually settle the bill. So, how can you pay for gas in Iceland? Well, you’ll find the following payment methods are used here:

• Credit Cards – You should probably be prepared for this one since it’s the most commonly used payment method in Iceland. But please note that you can only use a credit card with a chip and pin in Iceland. If you’re not sure whether this describes your credit card, we suggest checking in with your bank before coming to the island.
• Prepaid Gas Cards – Once upon a time, we could purchase cards that looked similar to bank cards, and on which we could “load” money to make phone calls at public telephone booths (you know, the things people now use to take cutesie vintage Instagram pics). Well, similar to that concept, you’ll find prepaid gas cards in Iceland. You can buy these cards at some of our gas stations or local supermarkets, “load” cash onto it and then pay your gas at the pumps with this card.
• Digital Apps – This payment method is still on the rise in Iceland, so don’t expect it at every gas station. But as the general usage of these apps and platforms is on the rise, you’ll start finding the options to pay with Samsung Pay, Apple Pay, Google Wallet, etc. more and more.

Calculating Gas Needs & Gas Prices for Your Trip to Iceland

If you’re looking for a quick way of working out how much gas will cost you during your road trip through the country, there’s a very easy way to do it. Just use this nifty gas consumption calculator (for both gas and diesel), and you can calculate the gas consumption for your specific road trip routes! 

Save on Gas in Iceland: A Few Cost-saving Tips

If you’re done calculating the gas prices for your road trip route in Iceland, you’ll be glad to know that we’ve got a few additional tips and tricks that might lower that number, so listen up:

• Unless you’re planning on driving monster roads, there’s no need for a monster truck. The general rule of thumb is the bigger the vehicle, the higher the fuel consumption, and the more money you’ll need to spend on gas. Whenever possible, go for the zippy compact rental car with better fuel consumption.
• However, if you are planning on taking a few “roads less traveled,” you will have to budget accordingly. Unpaved roads and 4x4 roads like the F-roads in Iceland will require a vehicle to work harder, leading to it using more gas (inevitably increasing your budget).
• Don’t drive whenever you can walk. Most towns and campsites are pretty easy to traverse between your Mercedes Legs and our public transport. Keep the rental for those longer journeys between destinations.
• The colder months will always have you spending more on gas in Iceland. That’s because the vehicle works harder to combat the cold, battle against our legendary winds, and struggle through ice and snow. So, if this is something you’d like to avoid, it’s best to plan your trip for the warmer months (May to September).
• A steady and slower pace has been proven to be more fuel-efficient. If you drive a consistent 50 kilometers an hour or below, you can save up to 25% on your standard fuel consumption.
• There are discounts on gas to be found all over Iceland! Ask your rental agent if they’ve made any deals with local gas stations or get yourself the Camping Card that will not only give you the option of camping at ridiculously cheap prices but also give you discounts on gas.

• Even though not specifically gas-related it will definitely have an impact on your holiday budget. If you opt to rent a motorhome in Iceland rather than a standard rental vehicle, you’ll be saving so much on accommodation costs that you’ll almost be able to afford enough gas for another road trip!

Frequently Asked Questions About Gas in Iceland

Below, you’ll find some of the answers to the most frequently asked questions regarding gas in Iceland:

Is It Easy to Fuel Up in Iceland?

It’s easy to fuel up in Iceland, but it’s important to plan ahead if you’re going to be traveling to the more remote regions of the country. There, gas stations are few and far between, and are also more expensive.

Is Gas Expensive in Iceland?

Yes, gas is probably more expensive in Iceland than you’re used to for a variety of reasons such as our local taxes and the expenses of getting gas to the island.

How Do I Pay for Gas in Iceland?

The most common way of paying for gas is by using a credit card (with a chip and pin!). But you can also opt to pay using a prepaid gas card or via digital platforms and apps (the latter becoming more and more prevalent by the day). 

Is Diesel Cheaper Than Gasoline in Iceland?

Diesel generally tends to be slightly more expensive than gasoline in Iceland, but whether diesel is really the more expensive option at the end of the day will rely heavily on the gas mileage of the specific vehicle.

Time to Hit the Road!

Now that you know how much gas costs in Iceland and you’ve got plenty of cheat sheets and tips and tricks on how to keep gas costs down, it’s time to pack those bags, rent a motorhome in Iceland, and go on that road trip of a lifetime. And, who knows, maybe you’ll even be able to extend your road trip if you save enough money using all the helpful info in our guide.