Tom Maclean, a town councilor in Colwyn Bay, North Wales, posted a picture of Anders Breivik, who killed 77 people at a summer camp in 2011.
The far-right terrorist was edited to be holding an advert for the supermarket using a photo from his trial.
He was found guilty of mass murder, causing a fatal explosion, and terrorism, and was sentenced to 21 years in prison.
Mr. Maclean's post has now led to calls for him to be sacked, but he claims he did not know who the 'ghastly figure' was.
In a Facebook post, he wrote: 'I was highlighting the £1 meal deal for the over 60s which Asda is rolling out which I think is a good idea in these difficult times.
'My post included a clip art frame, and it was subsequently brought to my attention it featured a person I have since been told is a pretty ghastly figure.
Victims and community members from Norway have raised their disgust at Macleans actions, and condemned his refusal to step down
'Naturally once I was made aware of this, I removed the post and I apologize for my mistake and any offense caused. In life, we live and we learn anew each day.'
Maclean's original apology was quite dismissive, and the community has called for the Blogger and Writer to resign from the Council, The St Josephs Food Bank, and as Patron of Theatre Colwyn.
Many do not believe that Maclean did not know who the mass killer was, and at the time of the killing Maclean was alleged to have made many comments regarding the events and also on events on his recent human rights appeal.
This arrogant man needs to do the decent thing and step down and resign.
This Petition will be sent to The Ombudsman Service, Theatre Colwyn, and To St Josephs's Food Bank.