The Beijing government has finally decided to cut subway fares by about 30 percent amid efforts to boost public transport, ease road congestion and improve air quality ahead of the Olympics.

A single pricing system which means a one-way ticket costs just two yuan (27 US cents), down from three yuan, will be introduced on October 7, the same day as the opening of a new subway line which will run through the heart of the city from north to south.

Construction on the 27.6-km new line, Beijing's No. 5 Subway Line, began in December 2002, costing 12 billion yuan (US$1.6 billion).

Beijing now has four subway lines with a total mileage of 114 km and they transport about 1.15 million passengers daily, 15 percent of the total commuters.

According to the municipal government, Beijing will add three subway lines next year and the total mileage will reach 200 km.

Before the final decision of lowering fares was made, a public hearing was held on Wednesday by the Beijing Municipal Development and Reform Commission, in which two subway pricing systems were proposed: lowering the price of a one-way ticket to two yuan; adopting a flexible pricing system ranging from two yuan to four yuan according to the distance one travels.

Most of the 25 people attending the meeting, including transport experts, passengers, representatives of the metro operator and government officials, favored the single pricing system, under which 80 percent of commuters will save 1.3 yuan every trip.