Hi,
This could be due to Contact dermatitis or an eczema. Contact dermatitis is an inflammation of the skin caused by direct contact with an irritating or allergy-causing substance (irritant or allergen).
Irritant dermatitis, the most common type of contact dermatitis, involves inflammation resulting from contact with acids, alkaline materials such as soaps and detergents, solvents, or other chemicals.
It presents with itching (pruritus) of the skin in exposed areas and skin redness or inflammation in the exposed area.
Treatment is with topical corticosteroid medications which will help to reduce inflammation. Eczema too can present in a similar manner, the treatment is the same.
What you can do is to switch back to the original soap that you were using, if this has triggered the reaction then the lesion should clear up.
If it is an eczema, which can be confirmed by a biopsy, then it will keep recurring because there is no known cure for eczema. Prolonged use of topical corticosteroids is thought to increase the risk of possible side effects, the most common of which is the skin becoming thin and fragile (atrophy). Because of this, if used on the face or other delicate skin, only a low-strength steroid should be used.
ref:http://www.myonlinewellness.com/topic/adam1000869
ref:http://en.wikipedia.org/wiki/Eczema
This sounds like eczema, some of the doctors claimed that I had this problem. I have been to five dermatologists and received many diagnoses. The latest dr seems to be on the right track. At least he didn't come to a conclusion before i walked in the door, as 99% of dermatologists do. He actually said he didn't know what was going on. The symptoms definitely don't fit the typical problems.
The fact that the skin looks dry and is itching a lot almost make it certain. Jock itch typically doesn't affect the penis.
This could be contact dermatitis. Possibly an allergic reaction. Try changing soaps again and also laundry detergents. Don't use dryer sheets on any clothes.
Dove is usually a good choice but make sure you are using the sensitive skin version. I hope you have better luck than I had. My scrotum has been burning every day for over a year. None of the medications do anything. Cortisone makes it turn black. The doctor has never seen that. I am not allergic to it as I have used it in other locations.