If you’ve never visited the Land of Fire and Ice, let alone rented a car to explore this beautiful country, you might be wondering what to expect when it comes to gas prices in Iceland.
We’ll break down how much gas costs in Iceland and give advice on how to make your dollar go further—like renting a car with Firefly Iceland!
Gas Prices in Iceland: Current Gas Prices
Current gas prices in Iceland (2024) average out at about 304 ISK per liter, or $2.22 per liter. For those that are used to factoring the cost of gas by the gallon, that’s about $8.30 a gallon. Diesel prices are almost exactly the same, if not a bit less expensive by a few ISK (Icelandic króna, local currency).
While there are price differences depending on which area of Iceland you’re traveling, costs are generally less around the capital Reykjavik and increase slightly in more remote areas like the East and West Fjords.
Iceland is an area of the world where gas prices can fluctuate due to the cost of importing fuel. If you’re wanting to keep a close eye on the cost of gas in Iceland, you’ll need to check current prices for an accurate representation.
Average Cost of Gas in Recent Years
Like most of the world, the average cost of gas has varied widely in the last 10 years. For Iceland, gas prices spiked in 2022 at 345 ISK, about $2.52 a liter. The cheapest recent year was 2015 when gas prices were about 186 ISK, about $1.36 a liter.
Factors Affecting Gas Prices in Iceland
- Geographic Isolation
One simple reason why gas is more expensive in Iceland is its geographic isolation. It’s more expensive to transport gas to the country due to its remote location, adding to the cost.
- Taxes
Higher taxes when buying gas in Iceland affect the price.
- Economic Factors
As with gas around the world, economic factors influence the cost of gas in Iceland. The country’s economy also has an effect on the price of gas.
Finding the Cheapest Gas Station in Iceland
Cheapest Gas Station : Costco, but we only have one in Iceland
Americans and Brits will be happy to know that Iceland has a Costco! Located in the south of the capital city, Reykjavik, this is a great spot to fill up on inexpensive gas.
Don’t forget to bring your Costco card if you want to visit this gas station!
Cheapest gas stations on the road (via Route 1/Ring Road) : Orkan
The least expensive gas station in Iceland, aside from Costco, is Orkan. You can find these gas stations simply by using Google maps and searching for “Orkan”.
Second cheapest: Atlantsolía
Atlantsolía is the second cheapest gas station in Iceland and a good alternative if you can’t find an Orkan. You’ll also be able to find these using Google maps.
What are the other gas station options in Iceland?
Other gas stations in Iceland are…
- ÓB
- Olís
- N1
You can easily find any of these gas stations through a simple Google search. If you’ll be visiting more remote areas of the country, you might want to research gas stations ahead of time as phone service might become spotty.
Fuel Efficiency Tips for Your Iceland Road Trip
A few practical tips for improving fuel consumption and efficiency on your road trip around Iceland include…
Packing light
Excessively heavy baggage can cut down on fuel efficiency.
Check your tire pressure
Low air in your tires can cause fuel efficiency to drop drastically.
Use cruise control
When possible, try to regulate your speed as much as possible. Accelerating and decreasing your speed frequently can affect fuel efficiency.
Avoid idling
Try to avoid leaving your car running not only for fuel efficiency, but also for environmental reasons.
Avoid city driving
Luckily, Iceland doesn’t have many big cities so most of your driving will be on the highway, a more fuel efficient way to travel.
You’ll want to plan your route around Iceland ahead of time as much as possible if you’re attempting to save on fuel. Mapping out where you’re going will cut down on any access driving or getting lost. Also be sure to check Iceland’s official website to be sure that no roads are closed due to weather or geologic events like a volcanic eruption.
Our final tip for fuel efficiency is making sure you rent a fuel-efficient car. The fleet at Firefly Iceland Car Rental is full of fuel-efficient vehicles, both standard and 4×4 that are ideal for those traveling on a budget.
Additional Ways to Save on Gas: Using discount keychains on your Firefly car key
One added perk of renting a car through Firefly Iceland is the ability to use a gas discount key chain, attached to every set of keys.
You’ll be able to tap these at the gas pump for a discount.
Planning Your Trip in Iceland: Calculating Fuel Costs for Your Journey
For planning purposes, you can calculate the fuel needed for a 100 km journey by multiplying 100 / KPL (kilometer per liter). The sum of this equation will equal how many liters of gas you’ll need to make the journey.
Once you have that number, you can multiply it by the cost per liter of fuel to figure out about how much your fuel costs will be.
For example, a 100 km journey in one of Firefly Iceland’s VW Golf’s, using the current price per liter of gas in Iceland, would cost about $14. A 1,000 km journey would cost about $140 and traveling the entire Ring Road (without any stops), about a 1,300 km journey, would cost about $182.
Average fuel consumption for a few different cars in the Firefly Iceland fleet:
- 2020/2021 Volkswagen Golf: 15.8 KPL
- 2020/2021 Dacia Duster 4×4: 19.6 KPL
- 2022/2024 VW Tiguan 4×4: 10.6 KPL
Firefly Iceland Car Rental: Your Partner for Affordable Travel
As a discount rental car service, simply renting a car with Firefly Iceland is a cost savings for your trip to the Land of Fire and Ice.
The fleet at Firefly Iceland is also fuel efficient and reliable with vehicles like VW Golf’s and Tiguans.
You’ll also have cost saving bonuses like fuel discount cards which will help cut down fuel costs along the way.
Conclusion
Gas prices in Iceland are a cost that budget-conscious road trippers will need to consider and plan for. We hope this guide to the cost of gas in Iceland, and our tips on conserving fuel, help you plan your trip on the cheap!
Be sure to rent a car with Firefly Iceland for some of the least expensive prices—paired with reliable vehicles—in the country.
