5 Tips on How to Save on Gas in Iceland

One of the most common adjectives used to describe Iceland is… expensive. Iceland is one of the most expensive countries. Gas is no exception. The average fuel price is 224 ISK ($1.81) per liter. Meanwhile, the famous Ring Road is 1333 km (828 miles), and that’s if you do not take any detours (but you probably will). Today I want to share 5 ways that can help you save on gas while traveling in Iceland.

a single gas pump in the wilderness

1. Choose Diesel over petrol

When renting a car, pick diesel if you have a choice. Diesel is slightly cheaper in Iceland. On top of that, diesel-powered engines are more fuel-efficient and use up to 20% less gas. Of course, if you want to be super-duper eco-friendly, look for an electric vehicle, but they are still hard to find in the car rental market. 

2. Use self-service stations

The prices are lower at the self-service (sjálfsafgreiðsla) stations. Even if you arrive at the gas station with a service building and staff, look for self-service pumps. However, it is important to remember that you must have a chip & PIN card to use these stations. Since there is no staff, you can’t sign for your transaction. So if you don’t have one, contact your local bank before leaving your country, and they should sort it out for you. 

3. Use fuel discount cards and chips

The vast majority of rental companies will give a fuel discount chip attached to your car keys. This chip will give a 3 kr/liter discount at the selected gas station chains. All you need to do is scan the chip at the beginning of the transaction. Bonus tip: some gas stations offer free coffee or additional discounts when you have their card or chip. Yay, more savings! 

car keys with key chains

4. Pick the cheapest gas station

The most affordable gas stations in Iceland are:

  • Orkan
  • ÓB
  • Dælan
  • Atlantsolía

In more populated areas and bigger settlements, you might have a variety of different gas stations. I’d suggest bookmarking the GSM bensin page. It is updated frequently, and you compare one gas station to another. As you can see, in cities like Reykjavik and Akureyri, prices can vary up to 20%, and all you need to do is choose not the one on the main road, but take a little detour a couple of streets down. That’s it! Of course, this trick won’t work in the more remote areas because stations are fewer and far in-between. 

side-mirror of the car from a driver's perspective

5. Practice eco-driving 

Lastly, you can reduce your fuel consumption by driving more efficiently. 

  • Do not press hard on the gas pedal;
  • Maintain steady speed as much as possible;
  • Driver slower;
  • Remove your foot off the gas pedal and coast to slow down instead of using the brakes.

These simple tricks will lower your car’s fuel consumption by up to 25%. Pretty neat, right? 
So here it is – 5 tips on how to save on gas in Iceland. Looking for more ways to save money? Check out our blog.