Answer
In the Name of Allah, Most Gracious, Most Merciful.
All praise and thanks are due to Allah, and peace and blessings be upon His Messenger.
In this fatwa:
Islam permits the use of lip cream with alcohol denat when no alcohol-free alternative exists, as the alcohol is only applied externally and not consumed. Scholars justify its use in cosmetics and perfumes due to its functional benefits and the absence of intoxication.
Responding to your question, Sheikh Ahmad Kutty, a senior lecturer and an Islamic scholar at the Islamic Institute of Toronto, Ontario, Canada, states:
If you can find lip creams free of alcohol denat, you should go for it. You should check the ingredients listed on the product; in case of doubt, you should contact the manufacturer directly to ascertain the fact.
If you do not find any such product, then you may use the product according to the rulings of eminent scholars. They justify it because since it is only for external use and not for consumption, there is no need to be rigid.
On this ground, they allow perfumes or cosmetics containing alcohol. Alcohol is used for its high volatility (disappears immediately after application) and its drying, refreshing, and antimicrobial properties. Since one is not ingesting alcohol by applying it on the skin or body, there is no need to take a rigid position on it.
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Almighty Allah knows best.