We proposed an active differential intensity (DI) fiber coupled plasmon waveguide resonance (CPWR) sensor based on the mode competition effect in the C-band, aiming to enhance the sensitivity. The sensing head is a fiber probe with a sensing layer of ITO/Au/ITO/TiO2 film, enabling the excitation of CPWR in the C-band. The narrow CPWR spectrum allows DI interrogation by tracking the intensity of light at two wavelengths. The fiber probe is inserted into a dual-wavelength fiber laser to adjust the intra-cavity loss at the two lasing wavelengths. By using the differential modulation of the reflectivity from the refractive index variations, the mode competition effect is triggered. The powers at two lasing wavelengths change oppositely, enlarging the power difference and then resulting in enhanced sensitivity. The average sensitivity is up to 5702 dB/RIUs, which is 10 times higher than that of conventional DI interrogation. The sensitivity enhancement mechanism based on the mode competition effect provides a new technical approach for enhancing the sensitivity of DI SPR sensors.