Katerina Swanson
Iceland is the second most expensive place for fuel in the world, just behind Hong Kong. As of March 2025, the price of diesel in Iceland is ISK 326 per litre ($2.40 per litre), which is more than double the world average of $1 per litre. The high prices are due to a combination of factors, including geography, local taxes, and the cost of importing fuel to the island, as Iceland does not have any oil refineries. Diesel prices in Iceland tend to be slightly higher than gasoline, and they have increased by 1.2% in the past year. To save money on diesel in Iceland, it is recommended to use a fuel-efficient vehicle, plan fuel stops in advance, and practise smart driving habits such as maintaining a steady speed and avoiding unnecessary luggage weight.
| Characteristics | Values |
|---|---|
| Price of diesel in Iceland | ISK 326 per litre ($2.40 per litre or €2.347 per litre) |
| How it is labelled | "Dísel" |
| How to pay | Credit or debit card with a PIN, cash during staffed hours, prepaid gas card, or via digital platforms and apps |
| Cheapest place to buy diesel | Costco in Reykjavik, but a membership card is required |
| Ways to save money on diesel | Use a fuel-efficient vehicle, drive at a steady speed, avoid backtracking, reduce unnecessary luggage, and fill up at the cheapest stations |
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What You'll Learn
Diesel is labelled 'Dísel' in Icelandic
If you're planning a trip to Iceland and intend to drive, it's important to know that the country has some of the highest fuel prices in the world. Ranked second after Hong Kong, gas prices in Iceland are currently ISK 315 per litre, or $2.25 per litre. That's more than double the global average.
Diesel fuel is even more expensive than gasoline in Iceland. The current price is ISK 326 per litre, or $2.40 per litre, which is more than double the world average of $1 per litre. These prices have increased by 1.2% over the past year.
Now that you're aware of the prices, it's important to know that in Icelandic, petrol is labelled 'Bensín', while diesel is labelled 'Dísel'. This will be useful when you're filling up at the pump, as most stations in Iceland are self-service.
When filling up, it's crucial to ensure you're using the correct type of fuel for your vehicle. Gasoline and diesel are not interchangeable, and using the wrong type can lead to costly repairs. Diesel vehicles tend to have better mileage, so renting one might be a more cost-effective option. However, they are not as environmentally friendly as gasoline-powered cars.
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Diesel is more expensive than petrol in Iceland
Diesel fuel in Iceland is significantly more expensive than petrol. As of April 2025, the price of diesel was ISK 322.06 per litre, or USD 2.42 per litre, while the price of petrol was ISK 304.72 per litre, or USD 2.53 per litre. This makes the price of diesel approximately 6% higher than that of petrol in Iceland.
There are several reasons why diesel fuel may be more expensive than petrol in Iceland. One factor is the country's reliance on fuel imports. Iceland imports all of its fuel, mostly from Norway, due to the lack of domestic oil refineries. This reliance on imports may result in higher prices due to transportation costs and external market factors.
Another factor contributing to the high fuel prices in Iceland is taxation. Taxes and duties on fuel products can significantly increase their retail prices. While the specific tax rates on diesel and petrol may vary, the overall tax burden in Iceland is known to be relatively high, impacting the final price at the pump.
Geography also plays a role in Iceland's high fuel prices. The country's remote location and relatively small market size may result in higher transportation costs and less competitive pricing compared to larger, more accessible markets. This geographic factor can affect both the wholesale and retail prices of diesel and petrol.
Additionally, economic factors influence fuel prices in Iceland. The country's cost of living and overall price level may be higher than in other regions, which can extend to fuel prices. Moreover, fluctuations in the value of the Icelandic króna against foreign currencies can impact the price of imported goods, including fuel.
It is worth noting that, while diesel fuel is generally more expensive than petrol in Iceland, this difference in price may be mitigated by the fuel efficiency of diesel vehicles. Diesel engines typically offer better fuel economy than their petrol counterparts, which can result in lower overall fuel costs despite the higher price per litre. Therefore, when considering the relative expenses of diesel and petrol in Iceland, it is essential to take into account not only the fuel prices but also the fuel efficiency of the vehicles in question.
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Diesel costs ISK 326 per litre
As of March 2025, diesel fuel in Iceland costs around ISK 326 per litre, which is approximately $2.40 per litre. This makes it the second most expensive place for fuel in the world, just behind Hong Kong. The high prices are likely due to a combination of geographical, tax-related, and economic factors.
Diesel costs in Iceland are significantly higher than the global average, which is around $1 per litre. In comparison, the price of petrol ("bensín" in Icelandic) in the country is slightly lower at ISK 304.72 per litre or USD 2.53 per litre as of June 30, 2025.
The price of diesel in Iceland has been steadily increasing. Historical data shows that the average diesel price from April 27, 2015, to April 7, 2025, was ISK 243.08 per litre, with a minimum of ISK 169.40 on February 22, 2016, and a maximum of ISK 341.98 on July 4, 2022.
If you're planning a trip to Iceland and intend to drive, it's essential to be aware of the high fuel costs. To save money, consider renting a fuel-efficient vehicle, such as a small car like the Toyota Aygo, or a diesel model if it suits your route. Strategic fuel stops and smart driving habits can also help reduce your fuel expenses.
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Diesel costs $2.40 per litre
As of March 2025, diesel fuel in Iceland costs around $2.40 per litre or ISK 326 per litre. This is more than double the world average of $1 per litre. Iceland has the second most expensive fuel prices in the world, just after Hong Kong.
The high cost of diesel in Iceland can be attributed to a mix of geographical, economic, and tax-related factors. Iceland imports all of its fuel, mostly from Norway, as the country has no oil refineries.
If you're planning a trip to Iceland and intend to drive, it's important to be aware of the high fuel costs and plan accordingly. Consider renting a fuel-efficient vehicle, such as a diesel model, as they tend to be cheaper to run. Additionally, strategic fuel stops and smart driving habits can help you save money.
It's worth noting that petrol in Iceland is labelled as 'Bensín', while diesel is simply labelled as 'Dísel'. Most gas stations in Iceland are self-service and require a credit or debit card with a PIN for payment.
While the high fuel prices in Iceland may be surprising, they shouldn't deter you from exploring the country and enjoying its breathtaking landscapes. With careful planning and fuel-saving strategies, you can still have a memorable road trip without breaking the bank.
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Diesel costs €2.35 per litre
As of July 2025, diesel costs €2.35 per litre in Iceland. This is based on the conversion rate of 1 EUR = 139.29 ISK. The price of diesel in Iceland is significantly higher than the global average, which is currently $1 per litre.
Diesel costs in Iceland are among the highest in the world, second only to Hong Kong. This is due to a combination of geographical, economic, and taxation factors. Iceland imports all of its fuel, mostly from Norway, as the country lacks oil refineries.
The high fuel prices in Iceland can be mitigated by choosing fuel-efficient vehicles, such as diesel models or small cars like the Toyota Aygo. Strategic fuel stops and smart driving habits can also help reduce fuel costs. Keeping a steady speed, using cruise control, and avoiding aggressive acceleration can improve fuel efficiency.
It is worth noting that fuel prices in Iceland vary, so checking rates before filling up can result in cost savings. Additionally, most Icelandic gas stations are self-service and require a credit or debit card with a PIN for payment. Therefore, it is advisable to carry a working card when travelling in Iceland to ensure a smooth refuelling experience.
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Frequently asked questions
As of 07-07-2025, the price of diesel fuel in Iceland is ISK 326.06 per liter or €2.347 per liter.
As of 30-06-2025, the price of diesel fuel in Iceland is USD 2.53 per liter.
For a typical rental car with a 50-liter tank, filling up the tank will cost around 15,750 ISK or $113 USD.
