
Although the photo is not particularly clear I would suggest you mainly have a severe dry skin issue.
You may have scratched at something that is naturally present at the base of your penis and this has been made worse by the general dry skin you have.
It is also very common for infections to develop to hair follicles, sebaceous glands, or even simply blocked skin pores - if this is the case you will need to treat the infection so that it heals correctly.
I would normally suggest liquid antiseptic on these forms of infection, but this may worsen your dry skin - so a cream or ointment antiseptic may be best for you.
For the skin dryness, this depends on what your genital skin is in most contact with - for many men this would simply be too much exposure to soap and things like shower gel, but can also be down to whether you have skin issues elsewhere on your body, health problems, or perhaps even a combination of all these