For anyone with this kind of reaction, you should NEVER apply ANY chemical compound to the area until you know what exactly it is you are dealing with. As, you quite literally risk a horrendous reaction. Any skin that looks like this is basically telling you - ' I have had enough of this stuff, I need to return to my natural state '. You do not achieve this by adding something you have NO idea what the reaction is going to be.
I have a form of Balanitis, mine is Balanitis Xerotica Obliterans [BXO / Lichen Sclerosus (LS)] - and what you have with conditions like this is often a severe dermatological reaction to what is going on in the body as a whole. Autoimmune conditions are becoming more common, and simply stated, are a reaction to our modern way of life.
However, there are sever forms of Balanitis and the only way of confirming which it is YOU have is to have a biopsy test. My LS was part caused by a combination of over-exposure to oil based skin ointments, skin lotion and Baby Oil used as Lube.
Until you know exactly what you are dealing with remove your penis from ALL exposure to chemicals, even soap. Wash only with water, and ensure you are 100% dry every time you urinate, are sexually aroused, or after ejaculation. Don't use any Lubes, condoms, Baby Oil, skin lotion or creams - the problem can even be exacerbated by a reaction to soap powders. If you suspect you have this - once you have eliminated exposure to all other chemicals, and you still get an adverse reaction, swap to using liquid soap flakes, you get these from a supermarket and you can use it in a washing machine.
If it is proved you have a relatively simple skin reaction (BXO / LS is incurable!) / Balanitis going on, you can begin using things like lubes, lotions, moisturiser, condoms etc - do this one at a time, give each one a couple of weeks to see if you get the adverse reaction again, then, if you do you can avoid that in future. NEVER simply do everything you used to do, all at once, otherwise, you will never be able to separate-out the things your penis cannot cope with. Good Luck ......