I have added a seperate price block to the product page
<block type="catalog/product_price" name="catalog_product_price" template='catalog/product/price.phtml' />
For some reason, when I updated the product options, from drop down, the price is not being adjusted, but price does change in the original price area.
Below is a screenshot of the area on the page http://prntscr.com/fbj6fe
The problem was due to the page having another price box above the price box that I have added. After removing very first price box everything worked fine.