Gas Prices in Iceland 2025: Current Prices & Budget Tips
If you are planning a self-drive visit to Iceland this year here is everything you need to know about getting fuel and gas prices in Iceland in 2025.
If you are planning a self-drive visit to Iceland this year, gas prices may be one of your concerns. Here you will find a quick overview of gas prices in Iceland in 2025.
In general, things are more expensive in Iceland than in many places in the world and, unfortunately, gas prices are no exception. So, what should you expect when visiting Iceland in regard to gas prices?
How Much Is Gas in Iceland in 2025?
At the moment when this article is written, the petrol prices in Iceland range from 285-316 ISK and the Diesel from 298-323 ISK per liter.
If chasing the best deal on gas is important to you, we suggest checking out GSM Bensin to see the current prices at each gas station. At the moment, Orkan gas stations have the top 3 cheapest prices at their Bústaðarvegur, Dalvegur, and Reykjavíkurvegur locations in Reykjavík. Orkan also has the cheapest prices in Akureyri in the north of Iceland.
see the gas prices in each region in Iceland, depending on where you are heading, making it fairly easy to follow the best deals.
Latest Fuel Prices in Iceland per Liter (Gasoline & Diesel)
Gasoline (petrol) currently costs around 315 ISK per liter ($2.59), while diesel is approximately 326 ISK per liter ($2.68).
Is Gas Expensive in Iceland?
You are probably not going to like the answer to that question, but yes, Iceland has the third-highest petrol prices in the world. Planning ahead and choosing a fuel-efficient vehicle can make quite the difference in the amount you will spend on gas on your trip to Iceland.
Is Gas Cheap in Iceland?
No, the gas prices in Iceland are some of the highest in the world. We advise you to research gas prices before your arrival and plan accordingly as this can make a difference in the total amount you spend on your journey here.
Where to Get the Cheapest Fuel in Iceland?
In general Orkan has the most affordable gas stations in Iceland. When it comes to fuel savings, it is usually cheapest to fuel up near the cities in Iceland–Reykjavik and Akureyri.
Gas Prices in Akureyri
Gas prices in Akureyri are, in short, very similar to the ones you will find at gas stations in Reykjavík. When this article is written, the gas prices in Akureyri range from 284 – 315 ISK per liter.
How Much Should I Budget for Gas in Iceland?
Depending on which vehicle you choose, how long you plan to travel and where you plan to travel, the answer to this question varies.
To give you an idea of how much to budget for fuel, let’s say you choose to rent a small economy vehicle for 1 week and you plan on traveling the Ring Road in Iceland. For a 1 week trip traveling the Ring Road you can expect to spend anywhere between 32.000-36.000 ISK ($260-$295) on fuel. And if you plan on staying for two weeks traveling around you would simply double that to 64.000-72.000 ISK ($525-$595). This is based on a tank and a half of the largest fuel tank available in an economy car taking the least to most expensive fuel.
How to Save Money on Fuel During Your Iceland Trip?
If you are traveling around Iceland on a budget, here are some factors to keep in mind.
Choose a fuel-efficient, smaller/economy vehicle with a manual transmission, as manual cars typically offer better mileage and are cheaper to rent. If you're staying for a shorter time or only exploring areas near Reykjavik or along the well-paved Ring Road, a compact 2WD car will suffice and be more economical. However, for longer stays or trips into the highlands or remote regions, a 4WD may be necessary—but opt for the most fuel-efficient model available. Plan your route carefully to minimize backtracking, and fill up at larger town gas stations where prices tend to be lower than in rural areas.
Consider Fuel Efficiency
Choosing a fuel-efficient car is the first step in saving money on fuel while traveling around Iceland. Smaller vehicles, especially those with hybrid engines or diesel options, typically offer better mileage and can significantly cut down your fuel costs over the course of your trip. In any case, the more you save on fuel, the more freedom you’ll have to explore Iceland’s stunning landscapes without constantly worrying about your travel budget.
Keep Good Driving Habits
Practicing good driving habits can go a long way in saving fuel while traveling in Iceland. Drive at a steady pace, avoid rapid acceleration or hard braking, and stick to the speed limits—especially since fines for speeding in Iceland can be steep. Maintaining a consistent speed improves fuel efficiency so use cruise control when driving for long stretches. Avoid idling the engine unnecessarily and map out your trip well to keep from backtracking. By driving smoothly and mindfully, you’ll not only save on fuel but also enjoy a safer and more relaxed journey through Iceland’s stunning landscapes.
Refuel in the Cheapest Stations
This may seem obvious, but one of the most effective ways to save on fuel during your Iceland trip is to refuel at the cheapest gas stations. Generally, stations located in larger towns or cities like Reykjavik, Akureyri, or Egilsstaðir tend to have lower fuel prices compared to those in remote or rural areas.
The farther you are from a populated area, the more likely you are to pay a premium for fuel, sometimes significantly more. It’s a good idea to plan your refueling stops ahead of time using apps or online maps that track fuel prices across the country. Also, keep an eye out for self-service stations like Orkan or Atlantsolía, which often offer lower prices than full-service stations. Topping off your tank in towns before heading into more isolated regions can make a noticeable difference in your overall travel budget.
Best Fuel-Efficient Cars for Iceland: Our Recommendations
Our fleet of vehicles include fuel efficient 2WD and 4WD models to fit your Iceland travel plans and budget. If you plan on sticking to the Ring Road, our fuel efficient picks are the Toyota Yaris or the Hyundai i20. They will reliably get you where you want to go in comfort. If you plan on traveling F-roads and exploring the highlands of Iceland, a 4x4 (4WD) vehicle is required. The most fuel efficient 4WD vehicles in the Icerental4x4 fleet are the Toyota Rav4 Hybrid, the Dacia Duster and the Suzuki Vitara with manual transmission.
How Do You Pay for Gas in Iceland?
Iceland is full of self-service gas stations that take debit and credit cards with a chip and PIN. Most gas stations (but not all) also accept payments on smartphones. Not all self-serving gas stations accept payment on the phone so it is safer to keep the card with you as well. If you plan on paying for gas with cash, you will need to use full-service gas stations.
When using a self-service gas pump, you will have the option to choose “Fill”,or “Fylla” in Icelandic. If you choose this option, a hold will be put on your card for the amount of 30.000 ISK (Approximately 247 USD). Once your account is verified, this amount is reversed and only the amount you filled up for will be charged. This procedure may be troubling for those who have foreign cards used for the transaction, as it can take some time for the amount that was not used to be returned. If you would like to avoid this, we would recommend purchasing a fuel card at a gas station that you can fill up on as you see fit, however you would then be limited to only using the gas stations for which you have a pre-paid card.
Frequently Asked Questions:
Whether it’s your first time driving in Iceland or your fifth, we’re here to help take some of the stress out of your adventure. Navigating a new country can bring up plenty of questions about making sure you’re never out of gas on the road. That’s why we’ve compiled answers to the most common questions travelers have, so you can feel confident and prepared behind the wheel. With the right information, you’ll be free to focus on what really matters: enjoying Iceland’s breathtaking landscapes at your own pace.
How much does it cost to fill a gas tank in Iceland?
A typical 2WD car can be filled up for 20.000 ISK - 25.000 ISK while a 4x4 can range from 32.000 ISK to 57.000 ISK.
Can I use my credit card to pay at Icelandic gas stations?
Yes, you can use your credit card to pay at Icelandic gas stations. It should be noted that not all gas stations take digital payment such as Apple Pay or Google Pay.
Are fuel prices higher in remote parts of Iceland?
Yes, fuel prices are higher in remote areas of Iceland. We recommend fueling up in the nearest city or town before beginning your journey.
Should I rent a fuel-efficient vehicle?
If you are traveling around Iceland on a budget, renting a fuel-efficient car is a simple way to save money.
Do I need to return my rental car with a full tank?
Yes, each vehicle must be returned fully fueled or with the same amount of fuel as when you picked it up. Otherwise, an additional charge may apply.
Fuel Prices in Iceland: Final Tips for Saving on Fuel Costs
Fuel prices in Iceland can be significantly higher than what many travelers are used to, especially compared to prices in North America or mainland Europe. To make the most of your road trip and avoid unnecessary expenses, it's important to plan ahead. Choose a fuel-efficient vehicle, make use of fuel discount cards when available, and always fill up in larger towns where prices tend to be more competitive.
Driving smart by avoiding rapid acceleration, sticking to speed limits, and using cruise control can also help you stretch your fuel budget further.
For more practical advice on driving in Iceland, including fuel tips, road conditions, and local driving laws, check out our comprehensive driving guide. When you’re ready to hit the road, rent a car in Iceland from us today and enjoy an unforgettable journey through the Land of Fire and Ice.
