Whether dry, cracked or chapped, you can use olive oil alone to condition and protect your lips especially during the dry weather. Use it just the way you use your lip balm or petroleum jelly, apply to the dry area and leave it overnight for best results.
You can also combine olive oil with sugar to make a lip scrub. The paste of sugar and olive oil will exfoliate the lips, get rid of any dry or dead cells and leave the lips smoother than before.
However, olive oil might keep your lips hydrated when they are chapped, it will probably won’t do as good of a job than a product specifically formulated to moisturise lips. Also because of its oily nature, it might cause breakouts and irritation specially if you have an oily skin.
If you decide to use olive oil for your lips, only use good quality Extra Virgin Olive Oil!