Understanding Iceland Fuel Prices: What Travelers Need to Know
Planning a road trip in West Iceland is one of the best ways to experience the country’s dramatic landscapes, hot springs, and charming fishing villages. But before you hit the road, it’s important to understand how fuel prices work in Iceland—so you can budget wisely and enjoy the journey without surprises.
Fuel in Iceland is generally more expensive than in many other countries. This is due to a combination of factors: import costs, taxes, and the country’s relatively small market. Prices can change frequently, sometimes even daily, and they vary slightly between stations and regions. Most fuel stations display prices clearly at the pump, and many are self-service and unmanned, especially in rural areas.
In Iceland, fuel is sold by the liter, and you’ll typically find two main types: gasoline (bensín) and diesel (dísel). If you’re renting a car, always double-check which type your vehicle uses—putting in the wrong fuel can be a costly mistake. Many travelers are surprised by how quickly fuel costs add up, especially when driving long distances between attractions, so it’s wise to factor this into your travel budget from the start.
One of the most important tips for driving in West Iceland is to plan your refueling stops. In and around Reykjavík, fuel stations are frequent, but as you head into the countryside, they become more spread out. It’s a good habit to top up your tank when it drops to around half full, particularly in winter or when driving in the Westfjords and on the Snæfellsnes Peninsula. Most stations accept credit and debit cards, but some unmanned pumps require a card with a PIN, so make sure you have one available.
If you’re staying with Ourhotels.is, you’ll find that our locations are well placed for convenient refueling and exploring. At Hvítá Inn in Borgarfjörður, close to Borgarnes, you’re in an ideal spot to fuel up before heading north or west. Borgarnes has several fuel stations, making it a practical base for day trips to Hraunfossar, Deildartunguhver, and the surrounding countryside. Our staff at Hvítá Inn can point you to the nearest stations and help you estimate driving times and fuel needs for your planned routes.
On the Snæfellsnes Peninsula, The Stykkishólmur Inn offers a comfortable base in one of Iceland’s most picturesque coastal towns. Stykkishólmur has fuel stations in town, which is especially convenient if you’re driving the full loop of the peninsula or catching the ferry across Breiðafjörður. Because distances between small villages can be longer than they appear on the map, it’s smart to fill up in Stykkishólmur before setting off to explore places like Kirkjufell, Snæfellsjökull National Park, and the remote coastal viewpoints.
Further north and west, Ísafjörður Inn places you in the heart of the Westfjords, a region known for its dramatic fjords, steep mountain roads, and sparse services. Fuel stations are fewer here, and weather conditions can change quickly, so careful planning is essential. Ísafjörður itself has fuel stations, and it’s wise to fill your tank before driving out to more remote areas like Súðavík, Flateyri, or Bolungarvík. The team at Ísafjörður Inn can help you check road conditions, suggest scenic routes, and advise on where to refuel along the way.
To keep fuel costs manageable, consider a few simple strategies. Choose a fuel-efficient rental car if possible, especially if you’re traveling long distances. Drive smoothly and within speed limits—not only is this safer on Iceland’s often narrow and winding roads, but it also reduces fuel consumption. In winter, allow extra time rather than trying to rush; slower, steady driving is both safer and more economical. Some fuel companies offer discount cards or apps that can slightly reduce the price per liter, so it may be worth asking your rental company or checking with locals.
Staying informed is key. Fuel prices in Iceland are easy to check online, and many Icelandic websites and apps list current prices by station. Before you set off from your accommodation, a quick check can help you decide where and when to fill up. At Ourhotels.is properties like Hvítá Inn, The Stykkishólmur Inn, and Ísafjörður Inn, our staff are used to helping self-drive guests and can share up-to-date local knowledge about fuel, road conditions, and travel times.
Understanding Iceland’s fuel prices and planning around them will make your West Iceland road trip smoother, safer, and more enjoyable. With comfortable bases at Ourhotels.is—whether you’re exploring the waterfalls and valleys near Borgarfjörður, the coastal beauty of Stykkishólmur, or the wild fjords around Ísafjörður—you can focus on the adventure, knowing you’re well prepared every time you set out on the road.
