Hi.. Thanks for writing to us.. As per your complain it seems that along with dry chappiness along with redness around the lips can be due to Perioral Dermatitis.. It can be caused due to disturbances in microbial flora over the skin, bacterial infection,nasal and topical steroids, fluoridated toothpastes, harsh chemical cosmetics, poor facial hygiene, hormonal imbalances etc.. I would suggest you to consult a Dermatologist and get evaluated and he can do a thorough clinical evaluation done.. A & E ointment is an emollient and will help in lubricating the area but in case if there is Perioral dermatitis then you will be advised to apply topically ointments containing Doxycycline, Metronidazole.. You can also be advised oral intake of erythromycin.. Ointments containing Azaelic acid,Pimecrolimus can be advised to you. Avoid any skin cosmetic or steroid ointments.. Avoid excess sun exposure, use gel based sunscreen lotion.. Hope this information helps.. Regards.