We are excited to share some fantastic news regarding travel costs in Iceland for 2026. The Icelandic government has officially transitioned to a new Kilometer Charge system, replacing the old high taxes previously hidden in gasoline and diesel prices.
What has changed?
In the past, road maintenance was funded through high fuel taxes at the pump. As of January 1, 2026, those taxes have been removed, leading to a significant drop in fuel prices across the country (approximately 80–100 ISK less per liter).
Instead, all vehicles now contribute to road upkeep based on the actual distance driven. This is a much fairer system—especially for our camper and motorhome enthusiasts. Because these larger vehicles typically consume more fuel, the massive savings at the gas station far outweigh the new kilometer fee, making your Icelandic road trip cheaper overall than in previous years!
How we will proceed at Camper.is
To keep things simple and transparent for our guests and partners, we have decided on the following procedure for all 2026 rentals:
- Consistent Pricing: Our 2026 price sheets remain unchanged. Your “200km per day” or “Unlimited Mileage” options still apply to the base rental cost.
- On-the-Spot Transparency: To ensure you only pay for what you actually use, the governmental kilometer fee will be calculated at the end of your rental. We will record your odometer reading at pick-up and drop-off and charge the government’s exact rate based on your vehicle’s weight category.
- Minimal Administration: To cover the extensive reporting required by the government for each vehicle, a small administrative fee of 1,500 ISK (approx. €9) will be added to the final kilometer statement.
The Bottom Line
Even with the new fee, the total cost of “Fuel + Kilometer Charge” is significantly lower than the fuel prices of 2025. You can now drive into the Icelandic highlands or around the Ring Road knowing that your adventure is more cost-effective than ever before.
We look forward to welcoming you to the starting line of your next great journey!
Quick Reference for Your Agents
| Feature | Previous System | New 2026 System |
| Fuel Price | High (included road tax) | Low (Tax removed) |
| Road Contribution | Hidden in fuel cost | Based on actual KM driven |
| Camper/Motorhome Impact | Expensive due to fuel usage | Cheaper overall |
| Administration | None | 1,500 ISK fee per rental |
Savings Comparison: Diesel Motorhome
Assumptions: Average driving of 200km/day, fuel consumption of 12L/100km, and a diesel price drop of 80 ISK/liter.
| Trip Duration | Distance Driven | Fuel Saving (at the pump) | KM Charge (to Gov) | Admin Fee | Total Net Saving |
| 7 Days | 1,400 km | 13,440 ISK | 9,730 ISK | 1,500 ISK | + 2,210 ISK |
| 14 Days | 2,800 km | 26,880 ISK | 19,460 ISK | 1,500 ISK | + 5,920 ISK |
| 21 Days | 4,200 km | 40,320 ISK | 29,190 ISK | 1,500 ISK | + 9,630 ISK |
(Note: 1,000 ISK is approximately €6.70 / $7.30)
Why it’s even better for larger vehicles:
If your customers choose a larger, heavier motorhome (averaging 14L/100km), the savings become even more dramatic because the fuel price drop benefits them more than the flat kilometer charge costs them:
- 7-Day Trip in a Large Motorhome: Total net saving of approx. 7,900 ISK (€55).
Key Selling Points for the new rule:
- Lower Barrier to Entry: The cost of “filling up” is now much lower, which is the most visible cost for a traveler during their trip.
- Fairness: Travelers only pay for exactly how much they drive.
- Transparency: By charging the fee separately at the end, Camper Iceland ensures the client isn’t paying a “buffered” or estimated high price included in the daily rate.
Our Fact check
- The Saving: A typical motorhome or large camper has a fuel tank of about 60-80 liters. Every time a customer fills up, they are now saving roughly 5,500 to 7,500 ISK compared to last year.
- The Cost: The government kilometer charge for a standard passenger vehicle is 6.95 ISK per km.
- The Verdict: Even if a customer drives 200km in a day (costing ~1,390 ISK in fees), they have already saved far more than that just by filling up their tank once. For larger, thirstier vehicles, the benefit is even higher because the “hidden tax” they used to pay at the pump was much higher than the new flat kilometer rate.
Summary of the Change
- Petrol: Dropped by an average of 95 ISK per liter.
- Diesel: Dropped by an average of 80 ISK per liter.
- Status: All brands have passed the full tax reduction (about 1/3 of the total price) directly to the consumer.
Diesel
| Brand | Price Dec 2025 | Price Jan 2026 | Savings per Liter |
| N1 | 317.9 ISK | 237.7 ISK | – 80.2 ISK |
| Olís / ÓB | 317.8 ISK | 237.5 ISK | – 80.3 ISK |
| Orkan | 314.2 ISK | 234.2 ISK | – 80.0 ISK |
| Atlantsolía | 314.3 ISK | 227.0 ISK | – 87.3 ISK |
| Costco | 280.7 ISK | 204.3 ISK | – 76.4 ISK |
Gasoline
| Brand | Price Dec 2025 | Price Jan 2026 | Savings per Liter |
| N1 | 310.9 ISK | 216.7 ISK | – 94.2 ISK |
| Olís / ÓB | 310.8 ISK | 214.3 ISK | – 96.5 ISK |
| Orkan | 308.5 ISK | 212.1 ISK | – 96.4 ISK |
| Atlantsolía | 308.6 ISK | 212.1 ISK | – 96.5 ISK |
| Costco | 267.7 ISK | 182.1 ISK | – 85.6 ISK |
Disclaimer
Disclaimer & Terms
Governmental Fees: The Kilometer Charge (kílómetragjald) is a mandatory tax established by the Icelandic Government (Act no. 121/2024). This fee is subject to change based on official government regulations and vehicle weight classifications. Camper Iceland acts as a collection agent for these funds, which are then settled with the Icelandic Tax Authorities (Skatturinn).
Price Fluctuations: The fuel price comparisons and “Net Savings” examples provided in this post are based on average market rates as of January 2026 and a fuel efficiency estimate of 12L/100km. Actual savings may vary depending on individual driving habits, vehicle model, real-time market fuel prices at various gas stations, and the total distance traveled.
Administrative Fee: The one-time 1,500 ISK administrative fee covers the mandatory digital reporting, odometer verification, and government filing required for each rental contract under the new legislation. This fee is non-refundable.
Odometer Accuracy: Final charges are calculated based on the vehicle’s factory-installed odometer. It is the customer’s responsibility to verify the starting odometer reading at the time of pick-up.
Discover more from Camper Iceland
Subscribe to get the latest posts sent to your email.