Jeremy Hunt has said that Scottish oil and gas companies are the "losers" of his Spring Budget.
The Chancellor announced the extension of the Energy Profits Levy on Wednesday, much to the dismay of oil and gas companies and his North-east parliamentarians.
The announcement was labelled "disappointing" by Andrew Bowie, an energy minister, while Scottish Conservative leader Douglas Ross had also opposed the move.
Mr Hunt argued that the industry had to make a "fair contribution", after admitting that the sector was a "loser" of the budget.
Speaking to the BBC's Today programme on Radio 4, the Chancellor was asked who the losers were from the budget.
He said: "Foreigners who are resident in the UK who were able to pay a cheque and avoid paying tax at the same rate as everyone else - the so-called non doms.
"They are going to be paying significantly more tax.
"I've also asked the Scottish oil and gas industry to pay an additional contribution because the war in the Ukraine is lasting longer and oil and gas prices are going to stay higher for longer.
"So I think it's fair that they make an additional contribution to the cost of living."