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Hi and thanks for the query.
This seems like balanitis xerotica obliterans, a condition that makes the penile foreskin atrophic and lichen sclerosis of the penis.
However, scarring and fibrosis due to balanitis (infection) can also cause this to happen.
The best course of action is to see your Urologist and have this evaluated. Circumcision or a Preputioplasty are both the best fix to this.
Medical interventions can halt the progression of disease but never really completely cure it, so a surgical intervention will be better.
Let me know if you have further questions.
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Wish you good health.