Rachel Reeves has been accused of "hypocrisy" for "shifting the blame" on retailers despite the Government's financial benefits from fuel duty and VAT.
Speaking to GB News, the political commentator warned that the pain will get "worse and worse" for Britons at the petrol pumps, the longer the Middle East conflict continues.
Mr Usherwood explained the retailers' frustration with the Government: "It's all very well to accuse those working at the pumps, delivering fuel and those companies of price gouging, of increasing the price of petrol and diesel at the pumps.
"But actually, if you're making money as the Chancellor of the Exchequer, because fuel duty and VAT run as a percentage and therefore your revenues go up into the Treasury, it's slightly hypocritical.
"And the Chancellor and the Government across the board are trying to get ahead of this."
The Organisation for Economic Co-operation and Development has issued a stark warning that Britain will suffer more than any other G7 nation from the ongoing crisis.
Mr Usherwood noted that the economic outlook remains bleak: "So it is not looking good in terms of inflation.
"That means interest rates stay high, and that's bad news for homeowners as well."
Theo Usherwood has told GB News that it is 'hypocritical' of Rachel Reeves to 'shift the blame' onto petrol retailers
|PA / GB NEWS
The prolonged nature of the conflict threatens to compound these difficulties further.
While Donald Trump's announcement of a pause to negotiate with Iran may provide some relief, Mr Usherwood cautioned that extended hostilities will only deepen the damage to the British economy.
The financial strain on ordinary households is becoming increasingly severe, with fuel costs having risen by a quarter in recent months.
Mr Usherwood shared his own experience: "I filled up my car the other day and it's just a reasonable, small SUV, it was £90, and that wasn't at a petrol station on the motorway, that was just at a standard forecourt.
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Petrol is set to cross the £1.50 per litre barrier for the first time since mid-2024 on Thursday | GETTY"That's gone up by 25 per cent. Fortunately I'm okay to pay for it, but it's a lot of money for many people.
"Especially when you've got to get to work, when you're going to take the kids to school or whatever it might be."
Retailers maintain that ministers are too eager to deflect responsibility onto businesses, accusing them of profiteering from the crisis.
Mr Usherwood summarised their position: "Actually the Government's very easy, very quick to shift the blame onto them and say, well, look, you're making a quick buck here or a quick buck there and actually putting up prices to exploit the situation.
Mr Usherwood told GB News that the 'pain will get worse' for Britons the longer the conflict continues
|GB NEWS
"And actually, at the same time, not pointing out the fact that as a result of VAT and fuel duty, which are levied on at the pump, actually they could the Government could quite easily turn around and offer some respite by cutting them."
Speaking to GB News, Reform UK's Treasury Spokesman Robert Jenrick urged the Chancellor to "do the right thing" and cut fuel duty and VAT.
Calling on the Chancellor to implement an "emergency cut in VAT on petrol and diesel" for a "few months whilst the war is raging in Iran", Mr Jenrick argued that it will "provide relief" for struggling motorists.
Having slashed prices at a Dover petrol station by 5p, Mr Jenrick told GB News: "People are suffering so much right now with the cost of living, that we want Rachel Reeves to do an emergency cut in VAT on petrol and diesel. That would mean that it would be 12p per litre less for petrol, 14p less per litre for diesel."