Can someone give me some insight on this
You can get herpes in areas not on your penis (and really, maybe find a new doc for your STD concerns), but it sounds more like an infected hair follicle or a fungal infection, like you thought. If it lingers, go to an STD clinic or someplace similar and get it checked. Even if it's not an STD, they have seen all types of lumps and bumps, and will probably be able to identify it.