Councillor Andrew Gant said he was “very happy” to offer the “great saving and incentive to use our park and ride services”.
He said the move was “helping us all move around the city faster, thanks to the temporary congestion charge”.
“The congestion charge is also set to bring a whole host of new and improved bus services, laid on by bus companies, with more details expected very soon,” he added.
But former cabinet minister Anneliese Dodds previously criticised subsidising park and ride travel as it would “uniquely benefit residents from outside the city”.
“This seems extremely unfair,” she said.
“The consultation showed that the most popular use of monies from the charge was to reduce the cost of bus travel for all (and not just car drivers from outside Oxford).”