The "Gas & Go" Logistics Guide: How to Pay for Gas in Iceland Without Getting Stranded

You’ve just picked up your rental from Holdur Car Rental, the engine is purring, and the open road of the Golden Circle is calling your name. The landscape is eager to show you waterfalls, glaciers, and black sand beaches. But there is one tiny, logistical hurdle that causes more anxiety for travelers than the weather: pumping gas.

It sounds simple, doesn't it? But in Iceland, the "Gas & Go" experience is slightly different than in North America or parts of mainland Europe. We hear the stories every season: a traveler stuck at a remote automated pump in the Westfjords, credit card in hand, staring at a machine demanding a PIN they don’t have.

Don't let fuel anxiety stall your adventure. This guide is your definitive logistics manual for how to pay for gas in Iceland. We will cover everything from the crucial chip-and-PIN requirement to the battle between N1 and Olís, ensuring your tank—and your confidence—stays full.

The Golden Rule: Chip, PIN, and Unmanned Pumps

If you take only one thing away from this guide, let it be this: Automation is king in Iceland.

While Reykjavik and larger towns (like Akureyri) have gas stations with convenience stores, hot dogs, and attendants, the vast majority of pumps in the countryside are unmanned, self-service automats. These machines do not accept cash. They do not have a magnetic swipe reader. They require a specific type of card verification.

The 4-Digit PIN Requirement

To pay at the pump, you generally need a Credit or Debit card with a Chip and a 4-digit PIN.

For European travelers, this is standard. However, for travelers from the United States, this can be a sticking point. Many US credit cards operate on a "Chip and Signature" basis. When you insert these cards into an Icelandic fuel pump, the machine will ask for a PIN.

• If you enter your zip code: It will likely fail.

• If you hit "Enter" (bypass): It will likely fail.

• If you enter "0000": It will likely fail.

The Fix: Before you leave home, call your bank and request a PIN for your credit card. If they cannot issue one, plan to use a Debit Card (which almost always has a PIN) or rely on Prepaid Gas Cards (more on this below).

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Payment Methods: What Works and What Doesn’t

Let's break down the payment hierarchy so you know exactly what to carry in your wallet.

1. Credit & Debit Cards (The Primary Method)

• Acceptance: Visa and Mastercard are accepted everywhere. American Express is widely accepted but can occasionally be rejected at smaller, remote automated pumps.

• The Process: Insert card → Enter PIN → Select Pump → Fuel Up.

• The "Hold" Warning: When you pay at the pump, you often have to select an amount (e.g., 5.000 ISK, 10.000 ISK, or "Fill Up"). If you select "Fill Up," the machine may place a temporary authorization hold on your card (sometimes up to 25.000 ISK or $180 USD) to ensure you have funds. This hold usually clears within 24-48 hours, but it can look alarming on your banking app.

  • Pro Tip: To avoid large holds, select a specific amount (like 10.000 ISK) rather than "Fill Up."

2. Prepaid Gas Cards (The Tourist Savior)

This is the ultimate workaround for the PIN anxiety. Most major gas station chains in Iceland sell prepaid gift cards.

• How it works: You walk into a manned station (N1, Olís, Orkan) during opening hours, pay the cashier with your credit card (signature or Apple Pay works fine inside the shop), and buy a prepaid card loaded with 5.000 or 10.000 ISK.

• Why use it: You can use this prepaid card at the unmanned pumps without a PIN. You simply scan the prepaid card, pump your gas, and go.

• Strategy: Buy a couple of these at the first major station you see in Reykjavik before heading onto the Ring Road.

3. Apple Pay, Google Pay, and Contactless

• Inside the Shop: Contactless payment (tapping your phone or watch) works perfectly inside gas station convenience stores for buying snacks, coffee, or prepaid gas cards.

• At the Pump: This is hit-or-miss. Newer pumps in the capital area are starting to include contactless readers, but do not rely on Apple Pay for remote fueling. The rusty pump in the middle of the Eastfjords likely only has a chip slot.

4. Cash

• The Reality: Cash is essentially obsolete for fueling your car. You cannot feed bills into the pumps. You can only use cash to buy a prepaid gas card inside the store during business hours. If you run out of gas at 9:00 PM in a rural area, a pocket full of Króna bills will not help you.

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The Battle of the Brands: N1 vs. Olís vs. Orkan vs. OB

When driving the Ring Road, you will become very familiar with the logos of Iceland's fuel giants. Is there a difference? Does it matter which one you choose?

N1: The Market Leader

• Coverage: N1 has the most extensive network in Iceland. If there is a tiny village, there is likely an N1 pump there.

• Amenities: Their larger stations (like in Vík or Borgarnes) are famous for their "Gas Station Hot Dogs" and soup. They are practically community centers.

• Prepaid Card: The "N1 Card." Highly recommended to buy one as a backup.

• Bonus: Höldur´s exclusive partnership with N1 gives you discount of ISK 7 per liter of fuel. Simply use the smart fob attached to your key tag.

Olís (and OB)

• Coverage: A very strong competitor with excellent coverage on the Ring Road. Olís is the full-service station, while OB is their low-cost, automated self-service brand (often located on the same lot).

• Perks: They offer free coffee and Wi-Fi at many stations if you have their discount tag (sometimes attached to rental keys).

• Vibe: Often slightly less crowded than N1.

Orkan

• Coverage: Growing rapidly and very common in the capital area and major towns.

• Price: Orkan often markets itself as a budget-friendly option ("Low Price" leader).

• Tech: They are aggressive with contactless tech and have a decent app, but their rural coverage is slightly thinner than N1.

Atlantsolía

• Concept: Unmanned, automated stations. Very convenient and fast, but you won't find a convenience store attached. Great for a quick splash-and-dash.

The Verdict: For a self-drive tour, N1 and Olís are your safest bets due to their ubiquity. We recommend sticking to one brand and buying a prepaid card for that specific brand to keep things simple.

Step-by-Step: Using an Icelandic Self-Service Pump

Ideally, you will do this effortlessly, but here is the walkthrough so you know what to expect.

1. Park: Pull up to the pump. Note your pump number (though many screens ask you to select it).

2. Language: Look at the screen. There is almost always a flag icon (usually the Union Jack) to switch the language to English.

3. Insert Card: Insert your Credit/Debit card (Chip first) or scan your Prepaid Gas Card.

4. Enter PIN: Type your 4-digit PIN and press Enter (Green button).

5. Select Pump: Enter the pump number where your car is parked.

6. Select Amount: Choose 5.000, 10.000, or "Full Tank" (Fill-up).

7. Remove Card: The machine will tell you to take your card back.

8. Pump: Lift the nozzle (make sure you choose Diesel or 95 Octane/Benzin correctly—see below!) and squeeze the trigger. The pump will stop automatically when you reach your prepaid limit or the tank is full.

9. Receipt: If you need a receipt, you usually have to re-insert your card after pumping and select "Receipt."

⚠️ CRITICAL WARNING: Diesel vs. Gas ⚠️

This is the most expensive mistake you can make.

• Black / Black Handle: Usually Diesel.

• Green / Green Handle: Usually 95 Octane (Benzin/Gasoline).

• The Misfuel Preventer: Our rental cars have a sticker on the fuel door telling you exactly what to put in. Double-check every single time.

• If you put the wrong fuel in: DO NOT START THE ENGINE. Call Holdur Car Rental assistance immediately. Starting the engine circulates the wrong fuel that might damage to the engine, a cost not covered by insurance.

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The "Don't Run Out" Strategy: Logistics for Remote Areas

Iceland is vast. While the Ring Road (Route 1) is well-serviced, there are stretches—especially in the Northeast, the Westfjords, and near the Highlands—where stations are 100km apart.

The "Half-Tank" Rule

Adhere to the Half-Tank Rule: When your gauge hits 50%, stop at the next station you see.

• It provides a safety buffer if the next station is out of service (rare, but possible).

• It allows you to take a break, stretch your legs, and grab a coffee.

• It prevents "range anxiety" when the weather turns bad and you are burning more fuel than usual battling headwinds.

Remote Stretches to Watch

• Mývatn to Egilsstaðir (Northeast): There is a long stretch across the Möðrudalsöræfi highland desert where there are no stations. Fill up in Mývatn or Egilsstaðir before crossing.

• The Westfjords: Stations are located in the towns (Ísafjörður, Patreksfjörður), but the mountain passes between them are long and winding. Never enter the Westfjords on low fuel.

• The Highlands (F-Roads): There are almost no gas stations in the true interior (Landmannalaugar, Askja). You must have a full tank before leaving the pavement. For deep highland travel, carrying a jerry can (approved container) is sometimes necessary.

Tools of the Trade: Maps and Apps

You don't need to drive blind. There are excellent digital tools to help you find the nearest pump.

1. Gasvaktin (Gas Watch)

This is the gold standard for locals.

• What it is: A website (gasvaktin.is) that shows real-time gas prices across Iceland.

• Why use it: It doubles as a perfect Iceland gas station map. You can see exactly where the stations are and which brand is cheapest.

2. Google Maps / Apple Maps

• Both are reliable for finding "Gas Station." However, always verify the opening hours. If it says "Open 24 hours," it usually means the pumps are open 24/7, not the store.

3. The Navigation System in Your Holdur Rental

• Large number of modern fleet comes equipped with navigation systems or CarPlay/Android Auto compatibility, making it easy to search for POIs (Points of Interest) along your route.

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A Note on EVs and Hybrids

At Holdur, we offer a range of Plug-in Hybrids (PHEV) and Electric Vehicles (EV).

• Charging Networks: The main charging networks are ON (Orka náttúrunnar) and Ísorka.

• Payment: You will need to download the specific app (ON or Ísorka) and link a credit card to start the charging sessions.

• Availability: Fast chargers are becoming common at N1 and Olís stations along the Ring Road. If you rent a PHEV, you get the best of both worlds: electric efficiency for sightseeing and gas reliability for long hauls.

Read More: How to Drive the Ring Road Safely

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FAQ: Frequently Asked Questions

Here are the most common questions our rental desk gets regarding fuel logistics.

Do US credit cards work in Iceland gas pumps?

Yes, but with a caveat. Most US cards are "Chip and Signature." Iceland pumps require a PIN. You must ask your bank for a PIN before traveling. If you don't have one, use a Debit card or buy a prepaid gas card inside the station.

Can I pay cash for gas in Iceland?

Not at the pump. Unmanned pumps do not accept bills. You can only use cash to purchase a prepaid gas card or items inside the convenience store during business hours.

What happens if I put the wrong fuel in my rental car?

Do not start the car. Call the Holdur Car Rental breakdown number immediately. If you start the car, the engine could be ruined, and you will be liable for the full cost of the engine replacement (thousands of dollars).

Are gas stations open 24 hours in Iceland?

The pumps are almost always open 24/7 because they are automated. The shops/kiosks usually open around 8:00 or 9:00 AM and close between 8:00 PM and 10:00 PM, depending on the town size.

Do I need a specific gas card for the Highlands?

There are very few stations in the Highlands. Hveravellir and Kerlingarfjöll have pumps (usually N1 or Olís). It is best to have a prepaid card for both major brands if you are venturing deep inland, just in case the satellite link for credit cards is down.

How often should I fill up on the Ring Road?

Follow the "Half-Tank Rule." Never let your tank drop below half, especially in the East and North. This ensures you are never stressed about finding the next pump.

Which gas station has the best food?

N1 is famous for its hot dogs (pylsur). Olís often has better coffee and sandwiches. But for a real treat, look for stations that double as diners (like the N1 in Vík or the Olís in Borgarnes).

 

Ready to Hit the Road?

Navigating the gas pumps of Iceland is just a small part of the adventure. Once you have your PIN sorted and a prepaid card in your glovebox, the anxiety disappears, leaving you free to focus on the Northern Lights, the waterfalls, and the incredible drive ahead.

At Holdur Car Rental, we ensure every vehicle is inspected, fueled, and ready for your journey. Whether you need a rugged 4x4 for the Highlands or a comfortable camper for the Ring Road, we have the keys waiting for you.

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