I have dry skin on my penis by masterbation, its getting better! its just like a light reddish pink, should i be worryed? should i apply lotion?

Apply Moisturizer: It sounds that you are likely developing dermatitis due to friction. Applying a moisturizer like vaseline or baby oil can help. Of course the best treatment will be to slow down on the masturbation.

Yes: Using an emollient cream will decrease the dry skin. But if its caused by masturbation, you will have to be disciplined when you apply it or the problem will recur...... :).

Irritation: I would lay off the masterbation for a bit. Sounds like skin is irritated. Lotion may irritate skin more. If doesn't get better in a few days, see your doctor to rule out other causes (cellulitis, other infection).