Updated February 2026 – Updated Regularly
Fuel costs are one of the biggest expenses on an Iceland road trip, especially if you are driving the full Ring Road. While gas prices in Iceland are generally high compared to many countries, knowing where to fill up and which stations to look for can make a noticeable difference to your total travel budget.
Prices can vary slightly by region, brand, and how remote a station is. Below is a practical guide to finding cheaper gas around Iceland, broken down by region as you drive Route 1.
With the introduction of the new road tax in Iceland, gas prices were significantly reduced due to the removal of many taxes on the gas. This means its now cheaper to fill up your car by up to 30%.
Key Links:
Reykjavik and the Capital Area
Reykjavik and its surrounding towns usually offer the cheapest fuel prices in Iceland. Competition is higher here, and stations are easy to find.
What to know:
- Costco in Garðabær is typically the cheapest option, but requires a membership
- Orkan, Atlantsolía, and ÓB often have lower prices than N1 and Olís
- Many stations offer self-service pumps with card payment
Cheapest Gas Station In Reykjavik (as of 2026)
- Costco in Garðabær – 169.1 ISK per liter
Currently Costco has the cheapest gas in Iceland at 169.1 ISK per liter. Whilst amongst the local brands, Orkan at Bústaðavegur has the lowest at 183.10 ISK per liter.
Local’s advice on gas in Iceland:
Fill up your tank before leaving Reykjavik, especially if you are heading south or north for several days. Starting the Ring Road with a full tank can save you money later.
South Iceland
South Iceland is one of the most popular travel regions, with frequent stops along the Ring Road. Fuel prices here are usually reasonable but slightly higher than Reykjavik.
Common fuel stops:
- Selfoss
- Hvolsvöllur
- Vík
- Kirkjubæjarklaustur
What to expect:
- Prices increase gradually the further east you drive
- Most towns have at least one station directly on or just off Route 1
- Remote stations tend to be more expensive
Cheapest Gas Station In South Iceland (as of 2026)
- Orkan in Selfoss – 183.10 ISK per liter
Orkan in Selfoss is the lowest in South Iceland at 183.10 ISK per liter. However, this is closely followed by ÓB and Atlantsolía who both sit at 183.20 ISK per liter.
Local tip:
If you see a cheaper station in a larger town like Selfoss or Vík, it is often worth topping up rather than waiting.
East Iceland
East Iceland has longer distances between fuel stations, and prices can be slightly higher due to transport costs.
Key places to refuel:
- Höfn
- Djúpivogur
- Egilsstaðir
- Fáskrúðsfjörður
What to expect:
- Fewer stations overall
- Limited brand choice in smaller towns
- Prices are usually higher outside Egilsstaðir
Cheapest Gas Station In East Iceland (as of 2026)
- Orkan in Egilsstaðir – 211.90 ISK per liter
As previously mentioned, fuel prices in the East and more remote locations are typically higher. Therefore, the cheapest in Egilsstaðir (East Iceland) is Orkan which is 211.90 ISK per liter.
Local tip:
Always refuel when your tank drops below half in East Iceland. Do not assume another station will appear soon, especially in winter or late evening.
North Iceland
North Iceland has a good balance of availability and price, particularly around larger towns.
Best places to find cheaper gas:
- Akureyri (one of the best places to refuel outside Reykjavik)
- Húsavík
- Reykjahlíð (Mývatn area)
What to expect:
- Competitive prices in Akureyri
- Slightly higher prices near tourist-heavy areas like Lake Mývatn
- Reliable station access along the Ring Road
Cheapest Gas Station In North Iceland (as of 2026)
- Orkan in Akureyri – 183.10 ISK per liter
Orkan has 3 of the cheapest gas stations in North Iceland. They are located in Akureyri at Furuvellir, Högárbraut, and Mýrarvegur.
Local tip:
Akureyri is a smart place to fully refuel before continuing east or west, especially if you plan detours off Route 1.
West Iceland
West Iceland includes smaller towns and fewer Ring Road stops, so prices can vary.
Common fuel stops:
- Borgarnes
- Bifröst
- Stykkishólmur (off the Ring Road but useful for Snæfellsnes trips)
What to expect:
- Prices slightly higher than Reykjavik but still reasonable
- Fewer stations as you head into more rural areas
- Good access near Borgarnes
Cheapest Gas Station In West Iceland (as of 2026)
- Orkan in Borgarnes – 183.10 ISK per liter
Orkan is also the cheapest in Borgarnes. Though ÓB and Atlantsolía which are located close by are only .10 kr more costly at 183.20 ISK per liter.
Local tip:
If you are returning to Reykjavik via West Iceland, you can usually wait to refuel in the capital area unless your tank is low.
General Tips to Save Money on Gas in Iceland
- Fill up in Reykjavik and Akureyri whenever possible
- Look for Orkan, ÓB, Atlantsolía, and Costco for lower prices
- Avoid letting your tank drop too low in remote regions
- Use fuel-price comparison apps or Google Maps reviews for recent price hints
- Drive smoothly and respect speed limits to reduce fuel consumption
FAQ
- Where is the cheapest gas in Iceland?
The cheapest gas can be found at Costco in Garðabær, which is in the Capital Region.
- Is gas more expensive outside Reykjavik?
Yes. Fuel prices generally increase the further you travel from Reykjavik, especially in remote areas of East and North Iceland.
- How often should I refuel on the Ring Road?
It is best to refuel whenever your tank drops below half, particularly in East Iceland where stations are farther apart.
- Are fuel stations easy to find on the Ring Road?
Most towns along Route 1 have at least one fuel station, but long stretches in rural areas may have limited options.
- Do Icelandic gas stations accept foreign credit cards?
Yes. Most fuel stations in Iceland are self-service and accept international credit and debit cards with a PIN.