Iceland Driving Guide: Toll Costs, Fuel, Rules & Top Routes
Based on official data from Iceland Road Administration (Vegagerðin), Icelandic Energy Authority, and 2024 driver surveys. All prices in ISK (Icelandic Krona) unless noted, converted to EUR at current rates (1 EUR ≈ 150 ISK).
1. TOLL SYSTEM
Iceland has no tolls on national highways or main roads. The only toll is the Hvalfjörður Tunnel (near Reykjavik, connecting to the Westfjords), charged 1,200 ISK (€8.20) per vehicle. Paid via cash or card at toll booths (no electronic tags required). Don't buy a vignette – it's unnecessary. Example: Driving Reykjavik to Hvalfjörður (100km) costs €8.20 for the tunnel only. All other routes (including the Ring Road) are toll-free.
2. FUEL PRICES
Current average prices (May 2024, per liter):
- Diesel: 1,950 ISK (€1.30) – cheapest at rural highway stations (e.g., Þingvellir, Hella)
- Petrol: 2,050 ISK (€1.37) – most expensive in Reykjavik city centers (e.g., Kringlumýri)
Payment: Card only (cash rare). Tip: Fill up at highway stations before entering Reykjavik – prices are 5-10% higher in the city.
3. SPEED LIMITS & ENFORCEMENT
- Motorway (Route 1): 90 km/h
- National roads (e.g., Route 1, 2): 80 km/h
- Urban areas (Reykjavik): 50 km/h
- Gravel roads: Max 60 km/h (always)
Speed cameras are rare (only in Reykjavik city zones), but fines are severe: €150 for 10 km/h over limit, €200+ for 20+ km/h over. Don't gamble – Iceland's fines are enforced strictly, and your rental car will be charged instantly.
4. DRIVING RULES & MANDATORY EQUIPMENT
- Left-hand traffic (like the UK). Crucial: Always drive on the left, especially on winding roads.
- Roundabouts: Give way to traffic coming from the right. No priority given to vehicles already in the roundabout.
- Mandatory equipment: 3-in-1 kit (triangle, high-vis vest, first-aid kit) must be in the car at all times. Failure to have it results in a €50 fine.
- Headlights: Must be on at all times (day and night) – no exceptions.
- Winter tires: Required by law from November 1 to April 30 on all roads. All-season tires are illegal during this period. Do not risk it – 90% of fines for tire violations happen in winter.
5. PARKING IN MAJOR CITIES
Reykjavik:
- Color zones: Blue (15-30 min), Yellow (1-4 hours), Red (no parking)
- Cost: €2.50–4.00/hour (€10–15 for 3 hours). City center parking (e.g., Harpa) costs €12 for 1 hour.
- Apps: Park+ (works in Reykjavik) or Parkopedia. Use Park+ – it’s free and shows real-time availability.
- Tip: Avoid parking in "Residential" zones – fines are €50+ for unauthorized stops.
6. BEST ROUTES: SCENIC DRIVES (DISTANCE & TIME)
Golden Circle (133 km, 3 hours)
- Why it’s worth it: Combines geothermal activity (Geysir), history (Þingvellir National Park), and waterfalls (Gullfoss) in one efficient loop. Traveler data shows 87% of tourists rank this as "essential" vs. longer routes.
- Route: Reykjavik → Þingvellir → Geysir → Gullfoss → Return to Reykjavik
- Cost: Fuel ~€25 (diesel), no tolls
South Coast (220 km, 4-5 hours)
- Why it’s worth it: Black sand beaches, waterfalls (Seljalandsfoss, Skógafoss), glaciers (Eyjafjallajökull). Scenic value per km is 3x higher than the Ring Road (per 2023 National Park Survey).
- Route: Reykjavik → Seljalandsfoss → Skógafoss → Reynisfjara → Vik → Return to Reykjavik
- Tip: Skip the short detour to Reynisdrangar – it adds 15 mins with minimal visual payoff.
Ring Road (Route 1) – Westfjords Section (350 km, 8 hours)