country · Europe
As of early October 2026, a gallon of regular gasoline in Iceland averages $8.51 — that is $2.25 per litre, and ranks #207 of 225 places we track, where #1 is the cheapest.
In local money that is roughly 274.45 ISK per litre, at the exchange rate of mid Oct 2026.
Heavily taxed
Crude costs roughly the same everywhere — high fuel and value-added taxes are what push Iceland's pump price this high.
An estimated split of a $8.51 gallon in Iceland. Crude oil trades as one global price, so the part that differs between countries is mostly tax.
| Component | Per gallon | Per litre |
|---|---|---|
| Crude | $2.10 | $0.55 |
| Refining | $0.55 | $0.15 |
| Distribution | $0.85 | $0.22 |
| Tax | $5.01 | $1.32 |
| Pump price | $8.51 | $2.25 |
| Comparison | Per gallon | Difference |
|---|---|---|
| Iceland | $8.51 | — |
| World average of all 225 | $5.55 | +$2.96 |
| Europe average | $8.08 | +$0.43 |
| Cheapest anywhere — Libya | $0.09 | −$8.42 |
| Priciest anywhere — Hong Kong | $16.70 | +$8.19 |