Fuel in Iceland: real cost after the surcharge trick

Iceland fuel is among the most expensive in Europe. Diesel runs around 280–320 ISK/L at displayed prices (about $7.50 USD per gallon). But most stations post a "credit card surcharge" of 2–5% on the pump — which is technically illegal under EU cross-border interchange rules but is routinely charged because Iceland isn't in the EU and merchants can set their own surcharge.

The trick to paying the displayed price (no surcharge) is one of: pay cash, use a debit card from an Icelandic bank, or use one of a small number of credit cards that the chains have explicit no-surcharge agreements with. Without the trick, a 1,500 km trip can quietly cost ISK 8,000–15,000 more than the displayed price.

Chains also differ. Costco (Reykjavík only) is consistently the cheapest in the capital — ~30 ISK less per litre than N1. Orkan and Atlantsolia are competitive in rural areas. N1 has the most locations and is the practical choice for Ring Road trips.

The tool shows your fuel cost including any surcharge for your payment method. It also shows the price-difference vs the cheapest chain in your area. For a 1,500 km Ring Road trip in a 7 L/100km car, fuel alone is typically 25,000–35,000 ISK.

Compare chains lets you see how much you'd spend if you refuelled exclusively at the cheapest chain. On a Ring Road drive this isn't always practical (N1 dominates), but in Reykjavík you can choose.

Fuel prices change weekly. The 2026 reference prices in this tool are mid-range estimates. Always check gasvaktin.is (the Icelandic fuel price aggregator) the week you travel. The "no surcharge" credit card list also changes as merchant agreements are renegotiated — verify with your card issuer.

Costco requires a Costco membership (annual fee ~7,000 ISK, but visitors can get a day pass for 1,990 ISK at the door) and is Reykjavík-only. If you're arriving in Keflavík and leaving on the Ring Road immediately, Costco is impractical.