Thanks for your query.Based on the facts that you have posted it appears that you have developed Acute Necrotising Ballanitis.
Please do not attempt to peel it off as it may bleed and delay healing..Take some antibiotic like Augmentin
twice daily along with some anti inflammatory drug like Serropeptidase and Diclophenac.Apply topical antibiotic
ointment like Neosporin
locally. Get prescription of these drugs from your family Physician.