Currently, fares are all capped at a low level of €2 for up to two hours of travel, which covers nearly any journey in the small nation - which is about the same size as Oxfordshire.
The Grand Duchy's new coalition government has pledged to scrap tickets on all trains, buses and trams - a move which should come into effect by the summer of 2019. Last summer, the government provided free public transport for every child and young person under 10, while free shuttle services were made available to secondary school children travelling between home and school.
Press reports said the traffic problem was a major challenge for politicians seeking election as congestion was set to worsen with population growth in Luxembourg.
Luxembourg City, the capital of the tiny, landlocked European country bears the infamy of being one of the worst traffic congestion-hit cities in the world. The new government also plans to introduce two new public holidays.
Luxembourg absorbs daily 190,000 workers and employees from neighbouring countries, half of them in France and the other half split between Belgium and Germany.
A study suggested that drivers in the capital spent an average of 33 hours in traffic jams in 2016.
Now, from the start of 2020 all tickets will be abolished, saving on the collection of fares and the policing of ticket purchases. The two-time prime minister promised voters that environmental concerns would be of paramount importance while he remained in office, The Guardian reported. The introduction of free public transport is hoped to reduce this, by encouraging a shift away from commuting in private in private cars. But details of the plan still require some hashing out as there's yet to be a decision on what to do about the existing first- and second-class compartment on some trains.