Understanding Gas Prices in Iceland

There is no better way to explore the island than by road-tripping around the country. But this inevitably leads to many questions. The most essential being, of course, regarding gas prices in Iceland. Especially since Iceland has a bit of a reputation for being expensive.

But as long as you have the insider scoop into gas stations here on the island and you’re armed with some lethal gas price advice, it’s possible to not only have the journey of a lifetime but do it in the most affordable way. This article tells you everything you need to know about the gas prices in Iceland and how to ensure that you have the ultimate safe and affordable travels around the country.

The Gas Stations in Iceland

The first thing you need to understand about gas prices in Iceland is that we not only have different gas stations, but they actually offer different gas prices. Below, you will find the various gas stations you’ll find across the country and what to expect from each:

N1

N1 is a gas station that focuses on providing all-round customer service. This means not just gas but a bite to eat and convenience stores where you can grab groceries and a few essentials.

N1 is one of the gas stations you’ll find most around Iceland, and their aim is not necessarily keeping gas prices at an all-time low but rather to provide an excellent overall customer experience. Many say that N1 is currently one of the most expensive places to fuel up.

Atlantsolia

Atlantsolia is one of the newer gas stations, having only opened in 2003. But you won’t find many of them here on the island. Their main focus is to reduce costs at, well, any cost. So, you will find that Atlantsolia provides mostly what it promises it would – gas and nothing else (not even bathrooms). There are also no gas station attendants to help you, it’s all self-service gas pumps. So, in a way, you may end up paying a price for the cheaper gas prices at Atlantsolia after all.

Costco

You may be surprised to know that the American company Costco has also made its way onto our shores. But don’t get too excited yet because, currently, the country only boasts one Costco and one Costco gas station, which can be found in the capital city of Reykjavik. They have the same structure in Iceland as in the US, where Costco is reserved for members.

This is not as elite as it may sound. It’s essentially anyone who completed a form and was then given a Costco card. The Costco gas station is said to have some of the cheapest gas prices in all of Iceland, though, so you might need to consider joining if you haven’t already.

Ob

Ob has been around since 1996, and similar to Atlantsolia, their focus is on cutting prices. So, they also have a very lean company structure, with fewer overheads due to their gas stations having self-service pumps. Also, if you’re not from around here, it will seem very odd when you notice Ob is essentially run and managed by what is supposed to be their “competitor”, Olis. Ob is merely another branch of Olis targeting a different market.

Orkan

Aside from Costco, Orkan is believed to be another of the gas stations with the cheapest gas prices in Iceland. Orkan can be found all over the island, and people don’t even seem to mind that they use the same tactic as many of the other gas stations mentioned, making use of self-service gas pumps, because you still have access to other amenities such as bathroom facilities, convenience stores, etc.

Olis

Olis is essentially the OG of gas stations here in Iceland. They have been operating on the island since 1927, are one of the largest companies in Iceland, and, like Orkan, you’ll find plenty of their gas stations scattered all across the country. Unfortunately, with their manned gas stations with extra perks such as bathrooms, food, and convenience stores, the prices will inevitably reflect these additional overheads.

How Much is Gas in Iceland?

As we already touched on, gas prices in Iceland differ based on the type of gas station and the location. But if you would like to have a ballpark figure to work with when creating your budget, you can work with the following (whether petrol or diesel):

• Gas at N1= +/- 325 ISK ($2.35 or €2.17) per liter

• Gas at Atlantsolia = +/- 300 ISK ($2.17 or €2) per liter

• Gas at Costco = +/- 315 ISK ($2.28 or €2.11) per liter

• Gas at Ob = +/- 300 ISK ($2.17 or €2) per liter

• Gas at Orkan = +/- 300 ISK ($2.17 or €2) per liter

• Gas at Olis = +/- 325 ISK ($2.35 or €2.17) per liter
  

What Effects Gas Prices in Iceland?

There are a few factors that impact the gas prices in Iceland. They are:

• The fact that Iceland is an island. So, irrespective of which gas station you choose, the gas must be imported from somewhere.

• The location. There are very remote regions in Iceland where you can go for incredibly long stretches without ever coming across a person, a shop, or, yes, a gas station. So, when one pops up in such an area, it kind of gives them a mandate to charge higher fees. Not only because it costs more to get the gas to such a remote spot in the first place but also because of the good old-fashioned rule of supply and demand.

• The amenities. The more there is to manage and maintain, the higher the overheads to cover, which, inevitably, means the higher the prices charged to the consumer. That’s why there’s a big price difference between a gas station with just a few self-service gas pumps and one with gas station attendants, bathroom facilities, restaurants, stores, etc.

• Head office. Every gas station franchise has a head office that’s ultimately in charge of making business decisions that are in the best interest of the company. This will, of course, include the cost of products and services and how it will affect the bottom line.
  

What Will Impact Your Gas Budget in Iceland?

While the above-mentioned is out of your control, there are a few things that will ultimately impact your gas budget and that you will have a say in:

The Routes You’ll be Taking On

Iceland has a variety of routes, all with their own allures. But these range from extremely well-maintained and paved main roads to gravel roads so rough that you’ll be forgiven for wondering whether there really is a road at all. This will impact your gas consumption. The harder the car has to “work” to get you from point A to B, the more fuel you’ll be using.

The Type of Vehicle You’ll be Driving

Gas prices not only differ between petrol and diesel but also between makes and models of vehicles. Depending on which you choose, the gas consumption might be more or less than what is considered standard. For example, there will be a big difference in the amount of gas you’ll use if you’re cruising the country in a Kia Picanto vs. a 4x4 Hummer.

The Season During Which You’ll be Visiting

This is something many don’t think about when it comes to budgeting for gas, but the weather plays a definite role. For example, during Iceland’s winter season, you are almost guaranteed to struggle to get your car started (cars get cold too, you know?).

Constantly sitting on the ignition, restarting the engine, etc., will definitely take a chunk out of your gas. Having the vehicle battle our legendary winds is also bound to impact your gas consumption.

How Much Driving You’re Planning on Doing

This seems like it should be fairly obvious, but it’s not quite as clear-cut as it sounds. While it seems to make sense that day outings will cost less than an entire road trip, it might not be the case at all. For example, while making a day outing to Thingvellir National Park from Reykjavik, the back-and-forth might end up being the same as continuing to explore the country further.

And, when considering one’s accommodation in Reykjavik vs. camping at Thingvellir, it also starts blurring the lines between what is going to end up being the more expensive trip. We suggest sitting down and doing proper calculations of the mileage you’re planning on traveling and how your accommodation choices can also have an impact.

The Way You Drive

It has been proven that if you drive at a consistent pace (preferably under 50 km/h), you use up to 25% in gas consumption. You can get that down even further if you take it easy on the brakes. So, the way you drive will definitely impact how much you ultimately spend on gas in Iceland.

Whether You Take Advantage of Discounts and Specials

Some don’t know there are additional ways of saving on gas when visiting Iceland. Many rental agencies have formed partnerships with other local businesses, which means they can offer their customers all sorts of discounts and specials. This often also includes certain gas stations.

Some rental agencies also have a discount chip that comes attached to your rental vehicle’s keys. When using this chip at gas stations, it will give you discounts of up to 3kr per liter. All you need to do is ask your car rental agency, and they’ll happily provide you with any/all discounts and deals they may have.

Staying Up to Date with Gas Prices in Iceland

At the time of writing this article (July 2024), gas prices in Iceland stood at:

• Petrol @ 314.35 ISK (roughly $2.28) per liter

• Diesel @ 315.30 (roughly $2.29) per liter

 Gas prices will always fluctuate due to various factors such as world events, the global economy, and the latest happenings within the oil industry. To stay on top of the latest rates, we recommend checking local news sources or GlobalPetrolPrices.com

The Gas Prices in Iceland Demystified

Now that you have the inside scoop on gas and the gas prices in Iceland, it becomes much easier to plan a trip, and driving doesn’t seem as daunting or as costly as it may have seemed initially. Just remember to chat with your rental agent about your planned routes when renting a car in Iceland.

This way, they can advise on the best and most cost-effective vehicle for your trip and even give you the lowdown on a few other highlights along your route that you weren’t aware of.