Regan Brown
Iceland has a variety of fuel options for cars, including gasoline, diesel, and hydrogen fuel. The country is known for its high fuel prices, which can impact the cost of renting a car. Gasoline and diesel prices in Iceland are comparable, with diesel being slightly cheaper. To refuel, you can either use a self-service pump or opt for a full-service station, where an attendant will assist you. It's important to note that most stations require a card with a PIN for payment. Iceland is also pioneering the use of hydrogen fuel, with plans to transition all vehicles to renewable energy sources. When driving in Iceland, it's recommended to refuel whenever possible to avoid running out of fuel during long stretches without stations.
| Characteristics | Values |
|---|---|
| Type of fuel | Petrol (SP 95) or diesel |
| Fuel cost | The cost of filling up is similar for gasoline and diesel |
| Fuel prices | The lowest gasoline price in the past 25 years was approximately 1.2 USD/Liter, and the highest was about 2.6 USD/Liter. In early 2023, the average fuel price was 2.3 USD/Liter |
| Payment methods | Credit or debit card with a pin number |
| Full-service gas stations | Available but rare outside of the Reykjavik area |
| Self-service gas stations | Common in less built-up areas |
| Fuel efficiency | Driving at a slower speed can help reduce fuel consumption |
| Hydrogen fuel | Currently being tested in Reykjavik with plans for a full conversion by the middle of the century |
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Gasoline vs diesel
In Iceland, gasoline and diesel are both available as fuel options for vehicles. The country has a network of gas stations, including well-known brands like N1, Olis, Orkan, and OB. These stations vary in size, with some offering additional services such as small stores, bars, or restaurants. When renting a car in Iceland, it is common to come across petrol vehicles, but diesel options are also available.
When considering gasoline vs. diesel in Iceland, there are several factors to keep in mind. Firstly, the cost of fuel is an important aspect. In Iceland, the prices of gasoline and diesel are quite similar, with only incremental differences. However, it's worth noting that fuel prices in Iceland tend to be higher than in other countries, so budgeting for fuel expenses is essential when planning a trip.
The performance and efficiency of gasoline and diesel engines differ. Gasoline engines use spark plugs for ignition, while diesel engines rely on compression ignition. Diesel engines have higher compression ratios and are known for their fuel efficiency, especially on highways and for long-distance driving. They also have more torque, resulting in better fuel economy and acceleration. On the other hand, gasoline engines typically offer higher RPMs and faster acceleration.
It is crucial to use the correct type of fuel for your vehicle. Mixing gasoline and diesel can result in costly repairs, with diesel engines being particularly sensitive to incorrect fuel usage. When renting a car in Iceland, it is essential to pay attention to the fuel type specified on the tank door to avoid any issues.
Additionally, driving habits can impact fuel consumption. Driving at slower speeds and adhering to Iceland's speed limits can help reduce fuel usage. Rental companies in Iceland often offer gas discount counts, so it is beneficial to inquire about these when booking a vehicle.
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Paying at the pump
Paying for fuel at the pump in Iceland can be a little complicated, especially for tourists. There are a few things to keep in mind to ensure a smooth process.
Firstly, it is important to note that most gas stations in Iceland are self-service. This means that you will need to fill up your car yourself using the pump. Iceland offers two types of fuel: petrol (SP 95) and diesel. The type of fuel your car requires will be clearly specified on the tank door. It is crucial to ensure that you put the correct type of fuel in your car, as using the wrong type can result in expensive engine repairs.
When paying at the pump, you will typically need a card with a 4-digit PIN. Credit cards issued in the US often use chip and signature technology and may not have a PIN, so it is recommended to bring a debit card as a backup. Some gas stations, such as Olis, Orkan, OB, and Olís, do not require a PIN and accept American chip cards or mobile payment apps like Apple Pay, Google Pay, and Samsung Pay. However, it is always a good idea to check with your card company before your trip to ensure compatibility. Additionally, some gas stations, like N1, require you to purchase a prepaid fuel card, which can be inconvenient if you plan to use different brands of gas stations during your trip.
It is also important to budget for fuel costs in Iceland, as they can be significantly higher than in other countries. The price of fuel fluctuates over time, but it is generally more expensive than in the US or Europe. To save money, consider taking advantage of discounts offered by car rental companies or driving slower, as speeding can increase fuel consumption.
Lastly, gas stations in Iceland vary in size and amenities. While some may only have a single pump, others are associated with small stores, bars, or restaurants, providing an opportunity to warm up with a hot drink or a meal. Remember to refuel whenever possible, especially when travelling to remote areas, to avoid running out of fuel.
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Hydrogen fuel
Iceland has been working towards becoming the world's first fully green hydrogen economy. With its abundant geothermal and hydropower resources, the country has a head start over other nations in the utilisation of hydrogen. Iceland's National Energy Authority reports that geothermal energy accounts for a quarter of the country's power generation and up to 66% of its total primary energy use. Additionally, geothermal heating is used in 90% of Icelandic households.
Iceland has set ambitious goals for itself, aiming to be oil- and gas-free by 2050. This journey towards a green hydrogen economy began in the early 2000s with the introduction of hydrogen buses in Reykjavik. However, the technology at the time was not advanced enough, and the initial attempt was scrapped. In 2018, the EU provided funding for Iceland to acquire additional hydrogen buses, signalling a renewed push towards hydrogen-powered public transport.
The country's small population and low energy demand make green hydrogen production more commercially viable in Iceland than in other countries. Chemistry professor Bragi Arnason, also known as Professor Hydrogen, has championed the idea of making all vehicles and vessels in Iceland run on hydrogen. This locally produced hydrogen can be generated at a lower cost than in most other developed nations.
Despite these advantages, challenges remain, with cost being the primary hurdle. Green hydrogen production is a demanding technology that requires an optimal location with access to water and good wind or solar energy generation potential. Iceland's natural resources give it an edge, but the process is still expensive.
While hydrogen fuel technology for transportation in Iceland is still in development, the country remains committed to its net-zero ambitions. With continued investment and advancements in technology, Iceland may yet realise its vision of becoming the world's first fully green hydrogen economy.
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Electric vehicles
The high adoption rate of electric vehicles in Iceland can be attributed to several factors. Firstly, the country has an abundance of cheap, surplus renewable energy, with 99.98% renewable electricity in 2022, making it an ideal environment for electric vehicles. Secondly, the relatively short driving distances in Iceland make it well-suited for electric vehicles, as most trips are within the range of an electric car's battery. Additionally, the government has implemented several incentives to promote the adoption of electric vehicles, such as tax exemptions, import duty waivers, and funding for the development of fast-charging stations across the country.
The popularity of electric vehicles in Iceland is also driven by the cost savings they offer. The high fuel prices in Iceland make electric cars a more affordable option in the long run. Furthermore, electric vehicles produce zero emissions, making them an attractive choice for environmentally conscious travellers.
Renting an electric car in Iceland is a convenient option for travellers, with companies like Lava Car Rental and Hertz Iceland offering a range of electric and hybrid vehicles. These companies provide charging cables with their rental cars, and there is a well-established network of charging stations across the country, making it easy for drivers to keep their vehicles charged.
In summary, the adoption of electric vehicles in Iceland is high and continues to grow, supported by government initiatives and the country's abundant renewable energy sources. Electric cars offer cost savings and environmental benefits, making them a popular choice for both locals and travellers exploring Iceland's stunning landscapes.
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Fuel costs
The cost of filling up a car in Iceland depends on the vehicle. A standard rental car with a 50-liter tank typically costs around 15,750 ISK ($113 USD) to fill up, while bigger vehicles, such as 4x4s, will cost even more. For instance, one traveler reported spending between $90 and $100 (around 10,000 Icelandic Kroner) to fill up the tank of their 4x4.
The price of fuel in Iceland can vary depending on the region and the gas station. For instance, in 2024, the cheapest supplier in the Reykjavík area was Orkan's gas station, with prices ranging from 305 ISK to 328 ISK ($2.16 USD to $2.32 USD) per liter for 95 octane petrol. Diesel prices at Orkan stations were slightly higher, ranging from 309 ISK to 326 ISK per liter ($2.19 USD to $2.31 USD). Outside of Reykjavík, fuel prices in Iceland are relatively consistent across regions.
To save money on fuel in Iceland, it is recommended to choose a fuel-efficient vehicle, such as a small car like the Toyota Aygo, rather than a gas-guzzling SUV. Driving slowly and adhering to Iceland's speed limit of 80-90 km/h (50-55 mph) can also help reduce fuel consumption. Additionally, it is worth noting that diesel models are often cheaper to run than petrol-powered vehicles, so choosing a diesel car can be a cost-effective option if it fits the planned route.
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Frequently asked questions
Cars in Iceland use either petrol (SP 95) or diesel.
You can pay for fuel in Iceland using a credit or debit card with a PIN. Some gas stations will also accept cash, but card is better received.
The cost of fuel in Iceland is variable, but it is generally more expensive than in other countries. In early 2023, the average fuel price was 2.3 USD/Liter.
