Holly Energy Partners (HEP) 8-K Holly Energy Partners Declares Distribution Increases quarterly distribution from $0.715 to $0.725 per unit

Exhibit 99.1

Holly Energy Partners Declares Distribution
Increases quarterly distribution from $0.715 to $0.725 per unit

DALLAS, TX, January 29, 2008 — Holly Energy Partners, L.P. (NYSE:HEP) today announced declaration of its cash distribution, for the fourth quarter of 2007, of $0.725 per unit. For the prior quarter, $0.715 was distributed to unit holders. Holly Energy has increased its distribution to unitholders every quarter since becoming a public partnership in July 2004. The distribution will be paid February 14, 2008, to unit holders of record February 7, 2008.

Holly Energy Partners, L.P., headquartered in Dallas, Texas, provides petroleum product transportation and terminal services to the petroleum industry, including Holly Corporation, which owns a 45% interest (including the general partner interest) in the Partnership. The Partnership owns and operates petroleum product pipelines and terminals primarily in Texas, New Mexico, Oklahoma, Arizona, Washington, Idaho and Utah. In addition, the Partnership owns a 70% interest in Rio Grande Pipeline Company, a transporter of LPGs from West Texas to Northern Mexico.

FOR FURTHER INFORMATION, Contact:

Bruce Shaw, Senior Vice President & Chief Financial Officer

M. Neale Hickerson, Vice President, Investor Relations

Holly Energy Partners

214/871-3555