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The roads in Mykonos town are quite narrow, so a small, compact vehicle would be recommended. If you're avoiding the center and mainly beach-hopping, a regular sedan or even a Jeep is a good choice. If you aren't comfortable driving a stick shift, book your automatic car in advance as most hires in Mykonos have manual transmission.
The speed limit in urban areas throughout Greece is 50 km/h (31 mph), but it may be lower in specific areas, in which case the signs will be posted. The speed limit outside towns ranges between 80 and 90 km/h (50-56 mph), and on open roads it ranges between 120 and 120 km/h (62 -75 mph). Freeways have a maximum limit of 120 km/h (75 mph).
Because it's a touristy island, petrol prices in Mykonos are well above the average prices in mainland Greece. The average petrol prices in Mykonos are about €6.74 (US$7.65) per gallon. Average prices can go as low as €6.62€(US$7.51) per gallon and as high as €6.81 (US$7.73) per gallon. Remember petrol in Greece is priced by the liter and not by gallon.
Many hotels around the island offer free parking. There are a few free locations, including the large car parking lot near the Old Port, and the parking lot right behind the island's famous windmills, which is usually a bit more crowded. Paid parking lots across the island usually cost around €5 for a whole day and €10 for the night. Beach restaurants and bars also offer parking, at their own rates.