Where To Get The Cheapest Fuel In Iceland (2025)

Daniel Cramer Daniel Cramer

Daniel Cramer

(Updated: )
4 min read
Where To Get The Cheapest Fuel In Iceland (2025)
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Your guide to fuel prices in Iceland and where to fill up your car for the least amount of money.

Lowest gas prices today:

Petrol: 292kr

Diesel: 306kr

Highest gas prices today:

Petrol: 325kr

Diesel: 330kr

Typical costs:

  • Full tank (50 L car): about 15,000 ISK (roughly 110 to 115 USD)
  • Ring Road trip (~1,300 km): around 105 liters ? 31,000 to 33,000 ISK (230 to 250 USD)
  • 4x4 fuel use: 8 to 10 liters per 100 km, depending on terrain and driving style

Why Is Fuel So Expensive in Iceland?

Iceland doesn't produce fuel, so everything is imported and heavily taxed. On average:

  • Over 50% of the fuel price goes to taxes (VAT, carbon tax, excise duties)
  • Distribution costs are high, especially in remote areas
  • Smaller market means less pricing competition

So even when global oil prices drop, local prices stay relatively high.

Gas Price Calculator
Use this calculator to estimate your fuel costs during your trip in Iceland

Note: Prices vary significantly between locations and suppliers. Fuel is typically cheaper in urban areas like Reykjavík than rural regions.

Check live prices:

Cheapest Gas Stations & Brands in Iceland

Top Picks for Cheapest Fuel:

  • Costco (Garðabær)
    Cheapest option overall but requires Costco membership.
  • Orkan
    Usually the most competitive nationwide.
  • Atlantsolía & ÓB
    Consistently good prices at numerous locations.

Tip: For rental car returns, use the Orkan station near Keflavík Airport.

Tips to Save Fuel (and Money)

Fuel adds up quickly on longer drives. These simple habits help stretch your tank:

  • Use cruise control on flat stretches
  • Avoid long idling times, even in cold weather
  • Keep your tires properly inflated
  • Lighten your load ? remove roof boxes or extra gear
  • Fill up before heading into remote areas
  • Summer driving usually means better fuel economy than winter conditions

Reykjavík & Capital Region

Southwest Iceland (near Keflavík)

South Iceland

East Iceland

North Iceland

Westfjords

West Iceland

Interactive Map of Fuel Stations in Iceland

Use this interactive map to find gas stations across Iceland:

Additional Useful Resources

Fuel in Iceland: FAQ

What is petrol called in Iceland?
"Bensín" means petrol (or gas). Diesel is "Dísel."

Can I pay with a foreign credit card?
Yes, but make sure it has a 4-digit PIN. Most stations are self-service.

Are stations open 24/7?
Many are, especially near Reykjavík. In rural areas, fill up in advance ? some places have no fuel for 100 km or more.

How far apart are gas stations?
Outside major towns, expect distances of 50 to 100 km between stations. In the Highlands, it could be more.

Quick Summary & Travel Tips

  • Iceland fuel prices are high, so include fuel in your travel budget.
  • Choose Orkan, Atlantsolía, or Costco (if you have a membership) for better prices.
  • Fill up frequently, especially in remote regions.
  • Return rentals fully fueled to avoid extra charges.

Enjoy your Iceland adventure, and drive safely!

Final Tip

Before setting out, check for:

  • Gas station locations along your route
  • Weather or road alerts on road.is
  • Emergency supplies, especially for longer drives

And if you're looking for a fuel-efficient car or 4x4, see our latest rental deals

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