Electric vs Petrol Car Rental in Iceland: The Trade-offs

Electric vs Petrol Car Rental in Iceland: The Trade-offs

Iceland has emerged as one of Europe's most electric vehicle-friendly destinations, with nearly 100% renewable energy and an expanding charging network that stretches around the Ring Road and into the highlands. Yet choosing between electric and petrol for your Icelandic road trip requires careful consideration of your itinerary, budget, and tolerance for planning.

The Electric Advantage: Clean Power in a Clean Country

Driving electric in Iceland feels particularly satisfying given the country's commitment to renewable energy. Your Tesla Model Y or Volkswagen ID.4 runs on geothermal and hydroelectric power—the same forces that shaped the dramatic landscapes you're exploring. Daily rental costs for electric vehicles typically range from 18,000-35,000 ISK (€120-240), positioning them competitively against premium petrol options.

The financial benefits become clearer over longer trips. A full charge costs approximately 2,500-4,000 ISK (€17-27), compared to filling a petrol tank at 12,000-18,000 ISK (€80-120) with Iceland's expensive fuel prices of roughly 280 ISK per litre. For a week-long Ring Road journey covering 1,332 kilometres, electric vehicles typically require 3-4 charging stops versus 2-3 fuel stops for petrol cars, but at significantly lower cost.

Modern electric rentals offer 350-500 kilometres of range—sufficient for most day trips from Reykjavík. The 244-kilometre journey to Jökulsárlón glacier lagoon sits comfortably within this range, as does the 186-kilometre drive to Akureyri via the Kjölur highland route.

Charging Infrastructure: Comprehensive but Requires Planning

Iceland's charging network has matured dramatically since 2020. ON Power operates the largest network with over 100 fast-charging stations, while Orka Náttúrunnar and smaller operators fill gaps around the island. Fast chargers (50kW+) line the Ring Road at 50-80 kilometre intervals, with reliable stations in Selfoss, Hveragerði, Vík, Höfn, Egilsstaðir, Akureyri, and Borgarnes.

The Westfjords present the greatest challenge for electric travel. The 456-kilometre Westfjords peninsula has charging stations in Ísafjörður, Patreksfjörður, and Hólmavík, but the distances between them—particularly the 194-kilometre stretch from Ísafjörður to Patreksfjörður—require careful energy management and potentially slower driving speeds.

Highland routes like the F35 Kjölur and F26 Sprengisandur lack charging infrastructure entirely. These remote crossings spanning 170-200 kilometres through uninhabited volcanic deserts remain the exclusive domain of petrol and diesel vehicles.

Petrol Reliability: Freedom Without Range Anxiety

Petrol vehicles offer unmatched flexibility for spontaneous exploration. Iceland's petrol station network reaches every populated area and many remote locations, including automatic 24-hour stations that accept international cards. This infrastructure advantage proves crucial in the Westfjords, where fuel stops in Reykhólar, Búðardalur, and Stykkishólmur eliminate range concerns entirely.

For highland adventures, petrol vehicles remain essential. The F208 route through Landmannalaugar to Eldgjá, the F88 through Askja caldera, and the challenging F910 Sprengisandur route all require the extended range and refuelling flexibility that only conventional vehicles provide.

Rental costs for petrol vehicles span a wider range, from basic Hyundai i10s at 8,000 ISK (€55) daily to capable Toyota RAV4s at 25,000 ISK (€170). This variety allows budget-conscious travellers to access affordable mobility while providing robust 4WD options for demanding terrain.

Winter Considerations: Cold Weather Realities

Iceland's winter driving season from November through March presents unique challenges for electric vehicles. Cold temperatures can reduce battery range by 20-40%, turning a theoretical 400-kilometre range into 250-300 kilometres of real-world driving. Combined with limited daylight—just 4-5 hours in December and January—this creates tighter margins for error.

Petrol vehicles maintain consistent performance regardless of temperature, crucial when navigating the Ring Road's exposed sections during winter storms. The 206-kilometre stretch between Höfn and Djúpivogur, often battered by fierce winds and snow, becomes particularly challenging in an electric vehicle with reduced range.

However, electric vehicles offer advantages in winter comfort. Cabin preheating while plugged in means starting each day in a warm car, while instant torque provides excellent traction control on icy roads.

Making the Choice: Matching Vehicle to Itinerary

Choose electric if your itinerary focuses on southern Iceland's highlights: the Golden Circle, South Coast waterfalls, Jökulsárlón, and day trips from Reykjavík. These routes align perfectly with charging infrastructure while maximising cost savings. Environmental consciousness and interest in Iceland's renewable energy story add compelling reasons to go electric.

Opt for petrol when planning Westfjords exploration, highland crossings, or winter trips where flexibility outweighs cost savings. Budget travellers seeking basic transportation will find petrol vehicles offer more affordable entry points, while those requiring 4WD capability for remote locations need conventional powertrains.

Practical Booking Advice

Reserve electric vehicles well in advance, particularly during summer months when demand peaks. Major rental companies like Hertz, Avis, and local operator SADcars maintain electric fleets, though options remain limited compared to petrol vehicles.

Download charging apps before arrival: ON Power, Orka Náttúrunnar, and the comprehensive PlugShare app. Many rentals include charging cards or RFID tags that simplify payment at charging stations.

Both options offer viable paths to exploring Iceland's extraordinary landscapes. Your choice should align with your specific itinerary, budget, and appetite for the minor additional planning that electric vehicles currently require. In either case, you'll discover that Iceland's compact size and excellent infrastructure make it one of Europe's most rewarding self-drive destinations.

Planning to drive Iceland’s famous Ring Road? Hire a car through Discover Cars — compare hundreds of rental options, find the best deals, and book with free cancellation.

Looking for the best car rental deals in Iceland? Compare prices from all major rental companies with Northbound — Iceland’s largest car rental comparison site. Free cancellation included.

Planning your Iceland trip? Don't forget travel insurance — SafetyWing offers flexible Nomad Insurance from $56.28/4 weeks, ideal for Iceland's dramatic terrain and ever-changing conditions. Get covered before you go and explore with confidence.