Rajan Wilcox
Iceland has a strong gas station culture, and gas prices in the country are among the highest in the world. Diesel is pricier than gasoline, with an average price of ISK 326 per liter ($2.32 or $2.40 per liter), more than double the world average of $1 per liter. Despite the high prices, diesel vehicles are advantageous due to their better mileage. In Iceland, diesel beats out gasoline by about 10-15% on the highway. However, diesel vehicles have a higher environmental impact, which may be a concern for those visiting Iceland for its nature and clean air. The high diesel prices in Iceland can be attributed to various factors, including geography, taxes, and economic factors.
| Characteristics | Values |
|---|---|
| Diesel fuel price in Iceland | ISK 326 per liter ($2.32 or $2.40 per liter), or $8.78 per gallon |
| Comparison with gasoline price | Diesel is more expensive than gasoline |
| Comparison with global average | Diesel price in Iceland is more than double the world average |
| Diesel vehicles mileage | Better than gasoline vehicles |
| Environmental impact | Worse than gasoline vehicles |
| Fuel efficiency | Diesel has higher fuel efficiency than gasoline |
| Fuel stations | Self-service and open 24/7 |
| Payment methods | Credit or debit card with a PIN |
| Fuel discount cards | Available and help save money |
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What You'll Learn
Diesel is more expensive than petrol in Iceland
While diesel vehicles are a popular choice for long road trips in Iceland, diesel fuel tends to be pricier than petrol. As of March 30, 2025, the average price for a litre of gasoline in Iceland was 311.37 ISK, equivalent to €2.19 or $2.36. In contrast, diesel was more expensive, with an average price of 323.96 ISK per litre, or 2.27€/liter or 2.46$/liter. This price difference can be attributed to various factors, including higher taxes, fuel importation costs, and environmental policies in Iceland.
Diesel vehicles offer better fuel efficiency, especially for larger vehicles and long-distance travel. However, gasoline-powered vehicles are more common in Iceland, especially for smaller cars. The higher demand for gasoline in the country may contribute to the higher prices of diesel fuel. Additionally, Iceland is heavily reliant on fuel imports due to the lack of domestic fossil fuel resources, which can drive up the cost of diesel.
The variation in fuel prices between regions in Iceland also plays a role. Prices tend to be higher in remote areas due to increased transportation and supply costs. For instance, gas stations in Reykjavik and other major cities often have more competitive prices compared to less populated regions. The brand of the gas station can also impact pricing, with brands operating more unmanned stations usually offering slightly lower prices.
While diesel fuel may be more expensive than petrol in Iceland, it's important to consider the advantages of diesel vehicles in terms of fuel efficiency and performance, especially for long-distance travel and rugged terrain. However, gasoline vehicles may be more cost-effective for short drives around cities like Reykjavik, where petrol prices are more competitive.
Additionally, it's worth noting that fuel prices in Iceland are generally uniform due to government regulations, but slight variations can occur based on region and supplier. The high fuel prices in the country are a crucial consideration when planning a trip, as they can significantly impact your budget, especially for long-distance travel or when renting a larger vehicle.
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Diesel vehicles get better mileage
In Iceland, diesel is generally more expensive than gasoline, with diesel averaging 326 ISK per litre ($2.32) or $8.78 per gallon, compared to gasoline, which costs around 315 ISK per litre ($2.25) or $8.51 per gallon. However, diesel vehicles tend to have better fuel efficiency than their gasoline counterparts. Diesel engines are known for their fuel efficiency, often achieving higher miles per gallon (MPG) than gasoline engines. In fact, research by the Massachusetts Institute of Technology (MIT) found that speeding, rapid acceleration, and heavy braking can decrease fuel economy by 15-30% on highways and 10-40% in stop-and-go traffic. Therefore, maintaining a steady speed, using cruise control when possible, and avoiding rapid acceleration can significantly improve fuel efficiency and increase mileage.
There are other behavioural and modification strategies to improve the mileage of diesel vehicles. Behaviourally, checking tyre pressure and maintaining the recommended pressure levels are essential. Under-inflated tyres increase rolling resistance, making the engine work harder and consume more fuel. Additionally, removing unnecessary weight from the vehicle can improve mileage, as a lower weight reduces fuel consumption. Modification-wise, installing aftermarket equipment designed to improve fuel mileage can be considered. However, buyers should be cautious as many aftermarket products may not deliver the promised improvements.
While diesel vehicles generally offer better mileage, it is worth noting that diesel fuel tends to be more expensive in Iceland, and diesel engines have a higher environmental impact due to their higher emissions. Therefore, when deciding between diesel and gasoline vehicles in Iceland, it is essential to consider factors such as mileage, fuel costs, and environmental concerns.
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Iceland's gas stations are mostly self-service
Iceland's gas stations are a central part of the country's culture. They are often more than just a place to pump gas and leave. They are usually one-stop shops for all your road trip needs. You can find anything from a full grocery store to a cosy cafe, restaurant, or even a car wash at an Icelandic gas station.
Most gas stations in Iceland are self-service, especially in rural areas and along the Ring Road. They are open 24/7, so you can fuel up whenever you want without waiting around. However, there are also full-service stations where staff are on-site to help you fill up.
Self-service stations are generally cheaper than full-service stations because they don't have employees. To use a self-service station, you'll need a credit or debit card with a PIN. You can also use prepaid gas cards from major fuel brands like N1 and Orkan, which can be useful in remote areas. Here's how to use a self-service pump: insert your card, enter your PIN, select your fuel type (green for petrol, black for diesel), choose the amount you want to pump, and then grab your receipt.
Gas prices in Iceland are known to be high, and they vary depending on location and brand. The brands with more unmanned stations tend to have slightly lower prices, and the further away they are from a main harbour, the higher the cost. Orkan is one of the cheapest gas station companies in the country, with 65 self-service stations. Olis, a full-service station with food, groceries, and amenities, offers a discount card that gives you 5 ISK off every litre of fuel, free WiFi, discount coffee, and a 10% discount at their restaurants.
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Diesel is worse for the environment than petrol
Diesel fuel does not seem to be hard to find in Iceland. In fact, it is readily available at most gas stations across the country. Gas stations in Iceland are described as a central part of Icelandic culture. They are not just places to pump gas and leave but rather offer a range of services, including restrooms, snacks, and car washes.
When it comes to the environmental impact of diesel versus petrol, the answer is clear: diesel is significantly worse for the environment than petrol. Diesel vehicles produce more than four times the pollution of petrol cars. This is mainly due to the toxic emissions that diesel engines produce, which have been linked to negative health impacts, especially on the human respiratory system.
Diesel engines produce higher levels of nitrogen oxides (NOx), including toxic nitrogen dioxide (NO2), which has been regulated due to its long-term effects on respiratory health. In addition, the fine particulate matter (PM) emitted by diesel engines is a carcinogen and can cause acute respiratory issues. These emissions have led some governments to discourage the use of diesel vehicles or even ban them from urban areas.
While diesel engines were once considered more environmentally friendly due to their lower carbon dioxide (CO2) emissions, this attitude has shifted. The focus on reducing CO2 emissions led to a neglect of other harmful compounds emitted by diesel engines. In contrast, petrol cars can utilise three-way catalytic converters to reduce NOx emissions by around 30%.
Additionally, diesel engines require more maintenance to reduce emissions. For example, particulate filters can reduce PM emissions by over 90% but require good operating conditions and regular cleaning to prevent clogging, especially in urban driving conditions. On the other hand, petrol emissions systems are more self-regulating and require less driver input for maintenance.
Therefore, while diesel fuel is readily available in Iceland, it is essential to consider its environmental and health impacts when choosing between diesel and petrol vehicles. The higher pollution and toxic emissions of diesel engines have led to a decline in their popularity, with some governments taking active measures to reduce their use.
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Gas prices vary across Iceland
The price of gas in Iceland depends on the location and type of gas station. Gas stations with more unmanned pumps tend to have slightly lower prices, and those farther away from main cities or harbors will be more expensive. For example, the lone Costco gas station in Reykjavik is known for being one of the cheaper options. Additionally, the brand N1, which tends to have manned stations, has slightly higher prices than competitors.
Gas prices also vary between cities in Iceland. In Reykjavik and Akureyri, competition keeps costs down, but in more remote areas like the Highlands, prices will be higher.
It's worth noting that diesel fuel is generally more expensive than gasoline in Iceland, although the difference is not as significant as in some other countries. Diesel vehicles tend to have better fuel efficiency, so they may be a more cost-effective option if you plan to drive long distances. However, diesel vehicles have a higher environmental impact, which may be a consideration for some travelers.
To find the cheapest fuel along your route, you can use a mobile application such as Gasvaktin. Additionally, fuel discount cards offered by rental car companies and fuel companies can help you save money on gas.
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Frequently asked questions
No, diesel fuel is not hard to find in Iceland. There are four fuel companies in Iceland: N1, Olis, OB, and Orkan. The majority of gas stations are by N1, which can be found everywhere from big cities to smaller rural areas.
In Iceland, you will see three types of fuel: diesel, electricity, and gasoline/petrol.
The gasoline/petrol pump handle is green, and the diesel pump handle is black. This can be confusing for Americans as the green handle is for diesel fuel in the US.
Yes, diesel fuel is cheaper than petrol in Iceland. However, diesel vehicles are worse for the environment, which is a huge drawback for many people visiting Iceland.
