2026 Gas Prices in Iceland: What to Expect on Your Road Trip

Planning a road trip in Iceland is an adventure of a lifetime, with stunning landscapes, waterfalls, volcanoes, and the famous Northern Lights. But before you hit the open road, there’s one important aspect you need to consider: cost of gas in Iceland.

Knowing what to expect at the pump can make or break your travel budget, especially in a country known for its high living costs. Understanding gas prices and how to manage fuel expenses is crucial for anyone planning to explore Iceland by car. Plus, focusing on fuel efficiency can help you save money and make your journey smoother and more enjoyable.

Overview of Gas Prices in Iceland

Gasoline prices in Iceland are among the highest in Europe, which can come as a surprise to many tourists. As of early 2026, after Iceland reduced fuel taxes and introduced a new kilometer‑based road tax, the average price of 95‑octane gasoline at the pump is now around 210–220 ISK per liter, instead of roughly 300 ISK per liter in 2025. Diesel is slightly more expensive, typically in the 220–250 ISK per liter range depending on the brand and region. Prices still fluctuate from week to week and between stations, so it is always best to check live data before you refuel

Click on the Map and check the live Gas Price in Iceland today:

Compared to other European countries, Iceland’s gas prices are on the higher end. For instance, in neighboring Norway, which also has high gas prices due to taxes and environmental policies, fuel prices are somewhat comparable. In contrast, countries like Germany and France have slightly lower prices. It’s essential to keep this in mind when planning your budget for a road trip in Iceland, as fuel will be a significant expense.

Iceland’s new kilometer‑based road tax (from 2026)

From 1 January 2026, Iceland changed how road use is taxed and introduced a kilometer‑based road tax (kílómetragjald) that applies to all vehicles, including rental cars. Instead of collecting most of the road tax through petrol and diesel prices, part of the tax was removed from the fuel pump and is now charged separately based on how many kilometers you drive. For drivers, this means you now see lower prices per liter at gas stations, but a separate road‑usage fee is added, calculated from your odometer reading.

With Hertz Iceland, this road tax is handled by us for you, so you do not need to do anything extra during your rental. At the end of your trip, we simply calculate the kilometers driven and add the government‑mandated road tax (and our small administration fee,) as a transparent line on your final invoice. For full details, you can read our dedicated guide to Iceland’s new road tax for 2026 on the Hertz Iceland website.

Where to Find Gas Stations in Iceland

Gas stations in Iceland are generally well-distributed, especially along the popular Ring Road (Route 1), which circles the entire island. Major towns and cities, including Reykjavik and Akureyri, have plenty of gas stations, making refueling easy in these areas. However, when you venture into more remote parts of the country, such as the Westfjords or the Highlands, gas stations become sparse. In these regions, it’s crucial to plan your fuel stops carefully to avoid running out of gas in the middle of nowhere.

Most gas stations in Iceland are self-service, and you’ll often find them near grocery stores or in town centers. While driving the Ring Road, you can expect a gas station approximately every 100-150 kilometers. But if you’re exploring less-traveled paths, always make it a habit to fill up whenever you spot a station.

Tips for Saving on Gas Costs

Given the high cost of gasoline, maximizing your fuel efficiency can save you a lot of money on your road trip. Here are some practical tips:

• Drive Smart: Avoid rapid acceleration and heavy braking, as these behaviors increase fuel consumption. Try to maintain a steady speed, and use cruise control on highways when possible.
• Use Gas Station Membership Cards: Some gas station chains in Iceland offer membership cards that provide discounts on fuel prices. For example, N1 and Orkan offer loyalty programs where you can accumulate points or get discounts per liter.
• Optimize Your Car’s Condition: Keeping your tires properly inflated and ensuring your vehicle is well-maintained can significantly improve fuel efficiency. An underinflated tire creates more resistance, leading to higher fuel consumption.
• Drive at Optimal Speeds: Speed limits in Iceland are generally 90 km/h (56 mph) on paved roads and 80 km/h (50 mph) on gravel roads. Sticking to these limits not only keeps you safe but also optimizes your vehicle’s fuel consumption.

Practical Advice for Tourists

Refueling Tips:

• Payment Options: Most gas stations in Iceland are self-service and accept credit and debit cards. However, make sure your card has a PIN, as some pumps require it. Cash is also an option, but less common.
• Using Self-Service Pumps: Self-service is standard in Iceland. Instructions are typically available in English, so just follow the prompts on the screen. Be sure to select the correct fuel type for your vehicle. Most rental cars in Iceland use unleaded gasoline, so double-check the fuel type before refueling.

Checking Gas Prices and Planning Refueling Stops:

• Gas Price Apps: To find the best prices, use apps like “Gasvaktin” or visit websites that track gas prices in Iceland. These tools are handy for locating the cheapest fuel stations along your route.
• Planning Stops: If you’re exploring the Ring Road or remote areas, plan your refueling stops ahead of time. Gas stations can be sparse, particularly in the Westfjords or the Highlands, so it’s crucial to fill up whenever you can to avoid running out of gas.

Budgeting for Gas as Part of Trip Expenses:

• Estimate Fuel Costs: Before hitting the road, calculate your expected fuel costs based on your route and the average gasoline price, and remember that from 2026 this includes both fuel at the pump and Iceland’s new kilometer‑based road tax.
• Fuel Efficiency Matters: Renting a fuel-efficient vehicle can significantly reduce your gas expenses. Compact cars or hybrids, like the Toyota Yaris, are great for their fuel efficiency and ease of handling on Icelandic roads. If you’re planning to explore rugged terrain, consider a fuel-efficient 4×4 like the Dacia Duster, which balances capability with reasonable fuel consumption.
• Avoid Unnecessary Weight: The heavier your car, the more fuel it consumes. Pack light and only bring what you need for your trip to save on gas.

Choosing the Right Vehicle:

• Compact Cars: For general touring and city driving, compact cars offer excellent fuel economy and are easy to park and maneuver.
• Small SUVs: Ideal for the Ring Road or paved paths, small SUVs provide good fuel efficiency while offering more space and comfort.
• Fuel-Efficient 4x4s: If your adventure takes you into the Highlands or other remote areas, a fuel-efficient 4×4 vehicle is recommended. It provides the rugged capability needed for rough terrain without excessive fuel consumption.

Hertz Iceland Pro tip: Remember to include Iceland’s new kilometer‑based road tax in your driving budget, not just the cost of fuel at the pump.

Conclusion

Understanding gas prices in Iceland and how to manage your fuel expenses can make a big difference in your travel budget. By being prepared, planning your refueling stops, and choosing the right vehicle, you can enjoy a budget-friendly and hassle-free road trip.

Remember, renting a car from Hertz Iceland gives you the flexibility to explore this beautiful country at your own pace while keeping your costs in check. So, gear up, plan wisely, and set off on an unforgettable Icelandic adventure!