Iceland has one Costco. It sits in Garðabær, about fifteen minutes south of downtown Reykjavík, and it sells the cheapest fuel in the country. Your membership card from home works at the door and at the pump. This guide covers what it costs in 2026, how to fit the stop into a Ring Road trip, and what it honestly saves a one-week visitor.
Costco opened its only Icelandic warehouse on May 23, 2017, in Garðabær, a suburb about fifteen minutes south of downtown Reykjavík. It was the company's biggest new-market opening in decades. Search-and-rescue teams were called in to direct opening-day crowds. Within weeks, roughly one in four Icelandic adults held a membership card, and a Facebook group for posting Costco purchases drew members equal to a fifth of the national population.
The reason was simple. Iceland is a small market with high retail prices, and Costco undercut the local chains on fuel, groceries, and electronics from day one. The media covered the opening like a national event, because it was one. Nine years later the store is still busy, and its fuel station is still the price floor for the entire country.
Costco membership is international. A Gold Star or Executive card issued in the United States — or in any other country — is valid at the Iceland warehouse and at its fuel pumps. You do not need to buy a local membership, and you should not. An Icelandic membership costs around 4,800 ISK per year, which would erase most of what a one-week visitor stands to save.
Bring your card. The membership card from home works at the door and at the pump. Carry the physical card or the digital card in the Costco app, plus a credit card for payment. Unattended Icelandic pumps prefer chip-and-PIN — our guide to paying in Iceland with US cards covers the details.
Costco runs a self-service fuel station with eight pumps beside the warehouse, and it consistently sells the cheapest petrol and diesel in the country. In mid-2026, petrol at Costco ran roughly 180–195 ISK per liter and diesel roughly 200–210 ISK. N1 and Orkan stations typically charged 215–240 ISK per liter for petrol over the same period. The gap — about 20–40 ISK per liter, or $0.55–$1.10 per US gallon — has held fairly steady for years. Fuel prices move with oil markets and the króna, so treat every number here as a range, not a quote.
Membership is required at the pumps. You scan your card first, then pay with a credit card. Lines form at peak hours; mornings are quicker.
On a full 50-liter tank, the saving over a highway N1 stop is usually 1,500–2,500 ISK, or about $11–18. That is real money. But keep the scale in mind: a full Ring Road fuel budget runs 25,000–35,000 ISK for a small car, and Costco is only reachable at the start and end of the loop. Everything in between is N1, Orkan, and Olís territory.
2026 ranges, approximate USD. Prices shift with fuel markets and the exchange rate.
| What | Costco Iceland | Typical elsewhere |
|---|---|---|
| Petrol, per liter | 180–195 ISK (~$1.40–1.55) | 215–240 ISK at N1 / Orkan |
| Diesel, per liter | 200–210 ISK (~$1.55–1.65) | 230–245 ISK at N1 / Orkan |
| Hot dog + drink | ~300–400 ISK (~$2.50–3) | 700–900 ISK at stands and stations |
| Pizza slice | ~600–700 ISK (~$5) | 1,200–1,900 ISK at a pizzeria |
| Whole 18" pizza | ~2,200–2,600 ISK (~$18) | 3,500–5,000 ISK delivered |
Inside, it is the warehouse you know. Same layout, same pallet racking, same Kirkland Signature labels — here shelved next to Icelandic lamb and skyr. Icelanders still queue for American products that never otherwise reach the island. The food court hot dog became a minor cultural item in 2017 and remains a fraction of the price of a hot dog anywhere else in the country. And if you left a fleece or rain shell at home, Kirkland gear is one of the cheapest ways in Iceland to replace a layer. For the wider picture of local price levels, see Is Iceland expensive?
The address is Kauptún 3, 210 Garðabær, across the road from IKEA. From downtown Reykjavík it is a 15–20 minute drive. From Keflavík Airport it is about 35–40 minutes, and it is genuinely on the way: Route 41 toward Reykjavík passes through Hafnarfjörður and Garðabær before it reaches the city, and Kauptún sits a few minutes off the road. Picking up a rental car at KEF and stopping here before check-in works cleanly. Fill the tank, buy water and road snacks, eat a cheap lunch, then drive on.
The same move works in reverse. Most rentals must come back with a full tank, and Costco is the cheapest place in the country to do it. Fill up here on your last day, drive the 35–40 minutes to KEF, and hand the car back full. The needle will not move on that stretch.
The warehouse opens around 10:00 on weekdays and closes between 20:30 and 21:00, with shorter Sunday hours, roughly 10:00–18:00. The fuel station keeps its own schedule. Check current hours before you rely on either, especially around holidays and very early airport runs.
Costco is one cheap fuel stop and a fun cultural detour. It is not a money pillar. On a seven-day Ring Road trip you will fill the tank four to six times, and only the first and last fill can happen here. Realistic total saving: $15–35 on fuel, plus a few dollars on lunch. Bónus and Krónan cover groceries perfectly well along the whole route, with no membership and no detour.
So the calculation is simple. Go if you already have the card, if you land at KEF with an empty rental tank, if you want to see a warehouse club that most of a nation's adults joined, or if you need a cheap fleece. Skip it without guilt otherwise. The Ring Road does not care where your first tank came from.
Yes. Costco membership is international, and a card issued anywhere is valid at the Garðabær warehouse and its fuel pumps. Bring the physical card or the app version, and a credit card for payment.
Yes, consistently. In 2026 the gap ran about 20–40 ISK per liter below N1 and Orkan. Discount days at other chains narrow it occasionally, but Costco has been the national price floor since 2017.
No. The pumps unlock only after a membership card scan, and the warehouse checks cards at the entrance. The food court sits inside the members' area, so it is members-only too.
Effectively yes. It is a few minutes off Route 41 in Garðabær, about 35–40 minutes from KEF and 15–20 minutes before downtown Reykjavík. A fill-up on arrival or before returning the car costs almost no extra time.
No. A one-week visitor saves perhaps $20–40 in total, less than a US membership fee. It only makes sense if you would use the membership at home anyway.