US offshore royalties paid by oil and gas firms for offshore production is expected to increase by 68% under the 2012 budget.

The US will receive $5.97bn from royalties in the fiscal year starting 1 October 2011 against $3.56bn in 2010.

The government plans to charge oil firms for drilling permits and inspection operations on federal lands and waters in order to increase funding to cover energy oversights following the BP oil spill in April 2010.

The budget also suggests an increase in inspection fees to $65m in 2012 from $10m in 2010, because of increases in the cost of enforcing new environmental and safety regulations.

Over $500m was proposed for revamping offshore drilling regulator the Bureau of Ocean Energy Management, Regulation and Enforcement.

The budget also looks to increase the Oil Spill Liability Trust Fund by 1¢ per barrel to raise $451m through to 2021.