Mapping out your Iceland adventure begins long before you pick up your camper van from us. While the cost of gas in Iceland can be higher than what some visitors are used to, a little planning goes a long way toward keeping your road-trip budget on track. The good news is that when you travel in one of our campers, your transportation and accommodation are combined — a huge cost saver that gives you more room in your budget for Iceland’s unforgettable experiences. Let’s break down what you can expect to pay at the pump and how to make the most of everything you spend.
How Much Does Gas Cost in Iceland?
So, how much is fuel in Iceland? Currently, Iceland petrol prices are roughly ISK 300.12 per liter, converting to approximately 2.37 USD per liter or 8.97 USD per gallon (where ISK stands for Icelandic krona, the country’s currency). For reference, there are approximately 3.78 liters in a gallon, meaning Iceland gas prices in USD equate to nearly $9 per gallon. Diesel typically costs a bit more, so it’s worth noting which fuel type your camper uses as you plan your trip.
Note, however, that Iceland fuel prices can vary between regions. While you’ll typically find more affordable fuel near Reykjavik, the capital, the cost of gas will be higher in the more remote and sparsely populated regions such as the East and West Fjords. Knowing these price differences can help you plan efficient fuel stops while still enjoying all the attractions on your route.
Why Is Gas So Expensive in Iceland?
Iceland’s remote location is a major reason for its high fuel prices. Everything must be imported, and the costs of transporting petrol long distances are usually transferred to customers. Additionally, Iceland tacks several taxes onto its fuel prices, including a 24% VAT (Value Added Tax) as well as a carbon tax at roughly ISK 11.75 per liter.
Iceland’s fuel market is also small, which means limited competition. So, you won’t see as many fuel price fluctuations as you’d find in larger markets. Plus, Iceland isn’t immune to the rising global costs of fuel. Therefore, between import costs, taxes, fees, limited competition, and a general increase in fuel prices, the cost to fill up your tank can add up quickly. While fuel is one of the pricier travel costs in Iceland, most road-trippers find that the country’s compact size keeps the overall fuel spend reasonable, especially compared to destinations with long driving distances.
But there’s good news in all of this. With just a bit of planning and guidance, you can still have your dream Icelandic adventure.
Current Gas Prices and Trends in Iceland
Gas prices in Iceland have followed global trends, with some fluctuations in recent years. Prices rose sharply in 2022 but have stabilized since then. Even so, the ups and downs of global oil markets, along with other economic and political factors, can still influence fuel costs. Seasonal demand also plays a role in the cost of fuel in Iceland, with ISK per liter typically increasing during the high tourism months of June, July, and August.
To avoid surprises, it’s always a good idea to track fuel prices before your trip. GSMbensin and Gasvaktin are two useful sites that display real-time fuel prices across regions and stations, helping you compare options and plan efficient fuel stops.
As in the U.S., gas station chains are often more affordable in Iceland than smaller operators, with Orkan and ÓB being among the most budget-friendly. However, the lowest gasoline prices in Iceland are usually found at Costco. You’ll need a membership to access its pumps, but American Costco memberships are valid in Iceland.
Paying for Gas in Iceland
Most gas stations in Iceland are self-service. Before filling up, though, there are a few things to keep in mind. In Iceland, you’ll likely need a four-digit PIN to use a card of any kind, including credit cards. If your credit card doesn’t have a PIN, you can request one from your credit card company before you travel. Otherwise, it’s best to use your debit card to avoid complications.
Some gas stations might place a pre-authorization hold on your card. This is a temporary hold that ensures you have adequate funds to cover the transaction. The total cost will be deducted from the hold, and the remaining funds will be released once the transaction is finalized.
If you want the most seamless experience, consider buying a prepaid fuel card. You can purchase these at most major gas stations in Iceland and load them up with funds for fuel. They’re widely accepted and help you avoid potential card-processing issues.
Just be sure to verify what type of fuel your camper van takes before visiting the pump. In Iceland, regular gasoline is called bensín and diesel is called dísel. Bensín pumps typically have green handles, while dísel pumps have black handles.
Budgeting for the Cost of Fuel on Your Iceland Road Trip
The best way to budget your Iceland trip fuel costs is to map out your journey. The popular Ring Road, which takes you through several major attractions, is roughly 1,300 kilometers (or 828 miles). However, if you plan on taking a detour to the south coast to see the black sand beaches, or want to visit the dramatic landscapes of the Westfjords, either will add several hundred more kilometers to your journey.
To estimate fuel costs, multiply your planned route distance by your camper’s average fuel consumption. Remember that diesel vehicles cost more to fill up but typically deliver better fuel economy than gasoline models.
But other factors besides distance also impact fuel economy, such as weather and driving behaviors. High winds, cold temperatures, and unpaved terrain like gravel or mud can all decrease your van’s fuel efficiency, not to mention higher driving speeds.
Fuel-Efficient Driving Tips for Icelandic Roads
Speaking of speed, while you can’t control fuel costs or the weather, you can make some strategic choices that might improve your vehicle’s fuel economy. Here are some tips for getting the best MPGs (or, in this case, Kilometers per Liter) in Iceland:
- Maintain a steady speed. Rapid acceleration and harsh braking cause a dip in fuel economy.
- Pack light. The heavier your load is, the harder your vehicle has to work to move forward, consuming more fuel.
- Avoid unnecessary idling. This wastes gas and drags on fuel efficiency.
If harsh winter weather hits and you have flexibility in your schedule, consider postponing your next drive until conditions improve. Once again, high winds and low temperatures can cause a significant drop in fuel economy. Waiting for milder conditions when possible can help improve your fuel efficiency and make driving safer and more enjoyable.
Camper Van Choices and Fuel Use for Iceland Adventures
So, how much is gas in Iceland for your upcoming trip? When estimating your fuel budget, the type of camper van you choose plays a role. That’s because, aside from the factors we already discussed, fuel economy figures can vary greatly between camper van models. Larger ones with bigger engines consume more fuel, while compact models with modestly-sized engines consume less fuel.
Your camper van’s drivetrain will also influence fuel efficiency. As tempting as it might be, a 4×4 camper rental in Iceland will cost more in fuel than 2WD models with better efficiency. However, 4×4 models have the traction necessary to explore more remote (i.e., unpaved) roads. Need help choosing the right camper van? Our team can walk you through the options and help you find the best match for your route and travel style.
Plan for Iceland Gas Prices with Rent.is
Ready for your Iceland adventure? Checking the current gas prices in Iceland, planning fuel stops, and being mindful of fuel-efficient driving habits can help you maximize your camper van’s mileage.
Exploring Iceland’s breathtaking landscapes in one of our camper van rentals lets you stretch your budget even further, accounting for your accommodation and transportation in one fell swoop. Remember, when you choose a camper van, your bed, kitchen, and transportation are all under the same roof, giving you the freedom to explore and flexibility to adapt to the unexpected (something Iceland is known for).
For customized care or more tips on selecting the right van for your journey, contact us. One of our team members would love to learn about your Iceland itinerary and help you choose the perfect Rent.is camper van to bring it to life.