I sent you an email on this as well, but just in case it didn't get received or in case you look here first...
I cannot diagnose you as I am not a dermatologist but I am a licenced esthetician and have done a lot of research on my own on skin conditions. What you are describing sounds very much like Perioral Dermatitis. It is often mistaken for Acne and usually occurs right around the mouth area but sometimes can spread to the nose, eyes, etc. The area will be red with small little bumps (some may even contain pus) and it can sometimes peel as well. You may experience itching/burning/soreness. There should be a small band directly around your lips which is not affected. [Sometimes a new onset of Acne rosacea can mimic perioral dermatitis]. If any of this sounds familiar, you may want to see a dermatologist. They will diagnose and most likely give you oral and/or topical Antibiotics . It can reoccur.
IMPORTANT: Look up photos of this condition on google, and if after hearing my description and seeing the photos (the appearance of it can vary so look at several) then start doing the following: 1) Stop any use of topical or oral corticosteroids (like hydrocortisone creams).. this can be a cause. It WILL get worse after you discontinue use but wait it out.. it will improve. 2) Do NOT use any products containing Benzoyl Peroxide.. it will irritate it further. 3) Believe it or not, flourinated toothpaste can be an aggrivating factor.. go to your nearest health food store and find some non-flourinated toothpaste. 4) Use a gentle cleanser free of irritants like fragrance, do not scrub, do not use hot water, gently pat dry with a soft towel. 5) Avoid extreme temperatures, direct sunlight, and chlorinated pools. Find a sunscreen with only "physical blockers" like titanium dioxide and/or zinc oxide. 6)You may try a tea tree gel or lotion (works for some to lessen irritation I hope I could provide some help.. the best thing to do is keep a positive mental attitude (stress worsens anything) It WILL improve! Good luck :)