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The Lancashire derby started tamely before the tackles started to fly in with two Burnley players booked for crude challenges in the first 20 minutes.
The deadlock was broken on 23 minutes when a great build-up ended with Burnley conceding Blackpool's first corner. Hoolahan's delivery was perfect and Latvia international Kaspars Gorkss flashed in a header which gave Clarets keeper Gabor Kiraly no chance.
Ten minutes later Jorgensen's deflected drive forced Kiraly into a brilliant save when he had to change direction at the last minute.
In the 38th minute later it was Blackpool keeper Paul Rachubka's turn to star when he flung himself full length to claw away Robbie Blake's goalbound free-kick.
In the second half Burnley started with their best football of the game but their attacks foundered on Blackpool's rock-like back four in which Gorkss and Steve Crainey were outstanding.
It was a magnificent cross-field ball by Crainey in the 59th minute which set up Blackpool's second. It found Hoolahan who back-heeled into the path of Jorgensen, whose perfect cross was headed home by Ben Burgess.
Five minutes later the Seasiders had the game completely wrapped up when Burnley failed to clear the danger and the ball fell to Jorgensen 25 yards out and he crashed a superb shot past Kiraly.
Victory saw Blackpool win the bragging rights in Lancashire having also beaten Preston in December.
Manager Simon Grayson said afterwards: "That was a magnificent performance. We've taken all the points over the festive period and put ourselves in a great position to start the second half of our campaign."