Caltex Australia has flagged higher dividend payouts for shareholders but chief executive Julian Segal has insisted the business is being harmed rather than helped by pump prices that have reached 10-year highs and brought unwanted scrutiny to the industry.

The fuels and convenience retailer said it will in future pay out between 50 and 70 per cent of its benchmark net profit in dividends, up from 40-60 per cent, and also flagged likely one-off capital returns through share buybacks.