Gasoline prices take dip despite Saudi Arabia hike

Prices at US gasoline pumps have dropped since Saudi Arabia's recent decision to hike the price of its oil. But the increase may be felt soon in US markets. Industry analyst Dan Lundberg says the overall US gas pump price fell by one-tenth of a cent to $1.33 a gallon in November, even though economists had predicted the Saudi price hike in late October would add between 2 cents and 3 cents a gallon to US pump prices.

But Mr. Lundberg says fierce competition among US gas marketers in the face of motorist price sensitivity and a 6 percent drop in demand this year have prevented the industry from recovering higher crude costs from the consumer.

He says we'll eventually pay the price at the pump.