RETAILER Asda has fired another salvo in the supermarket price war by offering to refund customers who find their groceries cheaper elsewhere.

The Leeds-based chain, which has a store at Bradford Road in Huddersfield, has launched an internet-based system allowing customers to check their grocery receipts against its competitors.

It offers to repay any difference in the form of a voucher.

The scheme is similar to the Never Knowingly Undersold motto used by the John Lewis department store, which dates back to 1925.

It follows a series of price-matching guarantees among the supermarket chains as consumers struggle in the recession.

Asda said its guarantee was permanent and would cover about 70% of groceries.