i used to have this problem (Exfoliative Cheilitis = peeling lips) very badly, but now for the most part its gone. I hope to have it fully cleared up during the next year.
I learned its mostly related to diet and intestional irritation resulting from poor digestion.
I did Liver Cleansing ( Liver Flush ) and the various cleanses discussed on this web site, especially in Andreas Moritz 's forum here. creams and drugs just touch the symptoms. if you want to really heal yourself, you have to do it from the inside out.
burning red (fire red) around lips... top lip bottom lip... easily irritated, always dry and peeling... sometimes it looked like my lips were alot bigger than they wore because the skin above and below the lips was so red.
I had this for many years, at least the past 15 years (I am now 32).